2024 Annual Fuel Price Review successfully concluded in Brisbane
The Solomon Islands 2024 Triennial and Annual Fuel Price Review Meeting was successfully convened in Brisbane, Australia, from August 12th to 16th.
The meeting brought together key stakeholders, including officials from South Pacific Oil Limited, Markwarth Oil Limited, and Gafung (SI) Limited. The Solomon Islands Government delegation was led by the Minister for Commerce, Industry, Labour and Immigration, Hon. Harry Kuma.
This important meeting, supported by Envisory Limited – a New Zealand-based consultancy firm specialising in monitoring petroleum fuel markets and benchmarking prices across New Zealand and the Pacific Islands – served as a platform for analysing fuel pricing submissions from key suppliers.
Minister Harry Kuma officially opened the meeting on Wednesday, August 14th. In his opening remarks, he emphasised the critical role that petroleum products play in the Solomon Islands, both for consumers and the local economy. He noted that petroleum is essential for transporting people, goods, and services across the country’s diverse islands.
The triennial and Annual Fuel Price Review Meeting is a vital process that involves a thorough analysis of fuel suppliers’ submissions to establish new Fuel Pricing Templates for 2024/2025 period.
The Solomon Islands Government regulates domestic petroleum prices through a Price Control mechanism, which adjusts monthly based on submissions from the primary petroleum suppliers, Markwarth Oil Limited (MOL) and South Pacific Oil Limited (SPOL), to the Solomon Islands Price Advisory Committee (PAC).
Minister Kuma further highlighted the increasing importance of petroleum products as a source of energy for fuel and power generation in the Solomon Islands. These products support various sectors, including manufacturing, fishing, tourism, farming, agro-industries, and mining, all of which contribute to income generation and employment in both formal and informal sectors.
The current Government of National Unity and Transformation (GNUT) has introduced reforms and policies aimed at enhancing the socio-economic capacity for sustainable growth and development in the productive sector.
These initiatives lay the foundation for the economic recovery and growth of the Solomon Islands economy.
Among these policies is the regulation of petroleum prices, including the annual review of the price template, to ensure a fair balance of benefits among fuel companies, consumers, and the government.
In recent years, the prices of goods and domestic fuels have risen due to the global impacts of the COVID-19 pandemic and geopolitical tensions, such as the Ukraine-Russia war and the Israel-Hamas conflict.
In response, the Solomon Islands Government temporarily removed import duties and sales tax on fuel for six months in 2022 to mitigate the impact on domestic fuel consumption. The triennial and annual fuel price reviews are crucial in addressing disparities with the fuel pricing mechanism.
“The government decision was essential to provide consumers with reasonably priced fuel while ensuring that fuel suppliers also achieve fair profit margins”, Minister Kuma stated.
Minister Harry Kuma extended his gratitude to Mr. Carson Korowa, CEO of South Pacific Oil Limited, Mr. Steve Barret, Director of Markwarth Oil Limited, and Mr. Louis Tiong of Gafung (SI) Limited for their active participation in the 2024 fuel price review process.
Accompanying Minister Kuma in the Solomon Islands Government delegation were Deputy Secretary (Admin/Planning) Mr. Hunter Masuguria, Price Advisory Committee Chairman Mr. Kaua, Secretary-PAC Mr. Edward Bamu, and Consumer Affairs and Price Control Director Mr. Geoffrey Dan Hou’ua. Mr. Shakil Kumar, Technical Advisor for MCILI from Envisory Limited, provided technical expertise and data analysis during the review meeting.
The delegation returned to the Solomon Islands on August 17th 2024, after the successful conclusion of the meeting.
ENDS//
-GCU Press Release