Good, services expensive despite oil price drop: ICCC

Caption:   ICCC Commissioner Paulus Ain.

By MATTHEW VARI

Sunday, January 25, 2016 (Sunday Chronicle, PNG)

THE Independent Consumer and Competition Commission (ICCC) has made an appeal to all business houses to pass on savings gained from the fall in fuel prices in the country over the last 15 months.

ICCC Commissioner, Paulus Ain, called on business houses in the country to come clear on their reasons in not passing on huge fuel reduction costs to struggling citizens.

“Daily you go to the shops and you will see that the prices are not changing, and we feel that the business houses are doing an injustice to us- the consumers and the people of this country,” Commissioner Ain said.

“Since 2014 July to December 2015, we have announced a number of price reductions for all petroleum products.”

“This has been as a result of the fall in crude oil prices overseas and elsewhere around the world and since a number of reductions have been announced- these prices are not reflected in the shops we see daily.”

Over the same period (15 months) domestic and retail prices for diesel, petrol, and kerosene have decreased by 36.1% for petrol, 48% diesel, and kerosene 47.6% over the period.

Ain pointed out one major factor in doing business is fuel- something that all businesses take into consideration when setting prices.

“Fuel plays an important role in the cost inputs. We are very concerned that every time we make an announcement about price increase on petroleum products, everyone starts jumping up and down,” he said.

“But since 2014 up until now nobody is telling us that I am the first one reducing the price of rice, tinned fish, nobody is telling the people of this country.”

“None of the business houses have been honest, none of the airlines are telling us that are reducing fares due to fuel price changes.”

“Everyone is very silent and they want to make more money and we are concerned that they should share this with the people of this country who are always there and will always be paying for it.”

He said despite the cost of doing business in the country being a general challenge- the continues falling fuel prices have benefitted freighting expenditure.

“While we understand there are a lot of factors that contribute to the high operating cost of doing business in this country, the accumulative decrease of fuel price has been 43% almost half, over the last 15 months.”

“Consumers should now be paying less and this is our appeal to the business community.”