Basil calls for review of fuel prices as cost-of-living rises

Independent Consumer and Competition Commission [ICCC] has announced major fuel price increases and warned PMV owners and transport operators not to raise fares.

Sam Basil Jr, Bulolo MP and United Labour Party leader, said the ICCC must understand the basic rule of supply and demand that drives business decisions.

He said a sudden increase of 70 to 80 percent in costs is too high for businesses to absorb without risking collapse.

Mr Basil said public transport systems in countries like Australia are mostly run by the government, unlike in PNG where individuals provide these services.

“I am asking the ICCC to explain that its report for Bulolo Wau Highway stated that the cost of operating PMV services is the highest,” Mr Basil said.

He said the high cost is due to the poor condition of the highway, which the government has failed to maintain. Despite this, fuel prices have increased while fares remain unchanged.

“I challenge the ICCC to consider who will be providing public transport services and ask them to visit Lae and see the number of people waiting for PMV to travel to and from Bulolo,” he said.

Mr Basil said while global economic issues continue to affect fuel supply, responses must be practical and realistic.

He said many PMV owners have loans and cannot survive if fuel costs rise by more than 70 percent while their income stays the same.

Mr Basil suggested that fuel imported before the recent global conflict should be sold at the old price. He said the government should cover 50 percent of the new increase, while businesses and consumers absorb only 10 to 20 percent until the next review.

“The effects are clear. The prices of goods and services are increasing every day. Families in rural areas are struggling to cope. Public servants are finding their pay insufficient against the rising cost of living,” Mr Basil said.

He said people without stable income are suffering the most because of the economic pressure caused by the global crisis.

“I ask the citizens to reflect on how to respond to these challenges. We must adapt, support local production, and seek ways to sustain ourselves rather than depend entirely on government to provide solutions and I have emphasized on agricultural production,” Mr Basil said.