The Price Tribunal this week issued a new price order for Rarotonga and all islands, including for the first time, Aitutaki.
Price Tribunal president Tatiana Burn said the new May price order, was the result of a review of all fuel and gas shipments over the past two months, with small reductions continuing to reflect global price movements.
The maximum retail price for petrol has fallen by five cents a litre, while the price of diesel has also been reduced, but by just one cent per litre. LPG will now be three cents a litre cheaper.
“All products for all islands have a maximum retail price except for LPG in the northern group,” said Burn in a statement.
“No maximum retail price is set for the Northern Group, as the majority of supply is for personal use, not retail, and is imported directly from Rarotonga.”
The new prices took effect three days ago and will remain in force for the next two months until the next price order is issued in July 2017.
As usual, price inspections will be carried out and breach orders issued for any non-compliance.
“Consumers should expect to see the new prices clearly displayed at service stations for these price controlled products,” said Burn. “Service stations are obligated to ensure that the new prices come into immediate effect.”.
Meanwhile, she says it has been a busy year for the Price Tribunal, with implementation of the new price arrangements introduced in July 2015, and subsequent separate reviews of both Pa Enua and Aitutaki margins.
“This was an involved process that required discussions with Aitutaki and Pa Enua retailers, island governments and members of the public to ensure a fair process for fuel retailers and setting of fair prices for consumers.
“Over the same period, a lot of effort has gone into ensuring that importers and retailers of fuel products have been able to understand and comply with their obligations under the Control of Prices Act 1966.
“There have been some issues, but we have been able to work effectively with stakeholders to resolve them. There is still some work to go in reviewing the international freight prices and their correlation to the costs incurred by our importers, and we are hoping that we will be able to make some impact on this.”
The Price Tribunal has now completed its review on LPG margins in the Pa Enua and Aitutaki.
Review reports are expected to be released over the next few weeks.
Full details of the new prices are contained in the new published price order and can also be accessed by contacting the Consumer Division of the Ministry of Internal Affairs.