5 Dec 2006

PNG's Gulf Province Governor wants import partiy pricing agreement reviewed

12:54 pm on 5 December 2006

Papua New Guinea's Gulf Province Governor, Chris Haiveta, wants the import parity pricing agreement reviewed to allow for reasonable pricing of petroleum products in the country.

He said the agreement between the State and operator of the Napa Napa refinery, InterOil Limited, was signed without knowing other major fuel products distributors British Petroleum and Shell would leave the country.

Both these distributors were recently taken over by InterOil in a move that resulted in the company becoming the major distributor of petroleum products in PNG.

Under the import parity pricing agreement, all crude supplied to Napa Napa will be taken as imported from Singapore.

Mr Haiveta says under the 30 year agreement, there's no competition and consumers are forced to pay what prices are being set.