Fuel, Energy Supplier Feeling Pinch Of Pricing Review
Leading fuel and energy supplier, Puma Energy says they have been hit hard and are feeling the pinch of the major swing in pricing regulatory structure put in place by the regulator, independent consumer competition commission (ICCC).
This significantly reduces the margins of its dealer operating service stations throughout the country says Hulala Tokome.
Puma Energy country manager Hulala Tokome pointed out that after every five years the ICCC, as the pricing regulator when reviewing of the margins of wholesale and retail of petroleum margins were reduced from 38.1 percent to 32 percent which is a 6t (toea) per litre for the Port Moresby market.
Mr Tokome stated the major change in the retail and wholesale pricing regulatory structure reviewed by the ICCC at the beginning of this year (2020) significantly reduced the retail margins of their dealers operating service stations throughout PNG and equally affects Puma PNG.
“With a fixed wholesale and retail price and margin, all of which have been reduced, the entire industry has been affected, while the Covid-19 pandemic has not been helpful at all.”
“We have been working closely with dealers that have reached out, to help them understand the new pricing structure and find solutions for the long term health and continuity of their business and our business as well,” said Mr Tokome.
Most of their service station dealers have understood the environment that they are operating within and are trying their best to adapt to this changed environment.
He also pointed out that in Port Moresby two service stations have temporarily closed and they are working with the dealers to help them adjust their business model to the regulatory changes.
“One of our roles, apart from working closely with our SME dealers, is talking to the ICCC about the impact the new pricing environment and the impact it continues to have on our dealers, giving feedback and support so that we are all working together to a common goal to support nation building and harness the talent of PNG Citizens.”