Puma Energy Predicting Rise in Fuel Prices
Puma Energy (PNG) Ltd expects that fuel prices will increase as demands for ground fuels also increase. This is in line with economic recovery.
According to the Country manager and director Hulala Tokome, this will have an effect locally compared to during the COVID pandemic.
“In general, prices are moving up and expected to continue to move up which will have an impact locally compared to the last few months and during the Covid-19 period,” he said. “With the gradual release of the Covid-19 vaccine globally, governments are rushing to get their population vaccinated to kick-start their economies. Brent prices are back in the mid US$50/bbl (K173.32/barrel of oil) range as positive sentiment is that the worst is over and the global economy is on track for a strong recovery. Biden winning the US presidency and aggressive monetary policy have pushed the US dollar (USD) lower which in turn makes crude more attractive on a USD basis helping push up Brent prices."
He continued, “The cold winter took North Asia by surprise and many end-users were caught short on fuels for heating demand causing a surge in prices in the short-term. We expect prices to continue their upward trajectory as demand for ground fuels increase in line with economic recovery.”
Meanwhile, the Independent Consumer and Competition Commission (ICCC) said that the cost of kerosene, petrol, and diesel will increase on average This is due to the increase of crude prices last month - which was caused by the easing of lockdowns after the second wave of the pandemic. , the indicative retail prices for petrol, diesel and kerosene will all increase on average, throughout the country.
According to the ICC, the prices this month “are inclusive of the import parity prices, domestic sea and road freight rates for the first quarter of 2021, the annual wholesale and retail margins for 2021, excise duty, and goods and services tax”.