The Price Tribunal has issued the September Price Order 05/2017 for Rarotonga and all islands reflecting reductions in prices for petrol, diesel and LPG.
There is a 6 cent per litre decrease in the maximum wholesale and retail prices for petrol on Rarotonga, a 5 cent per litre decreases for diesel and a 12 cents per kg decrease in LPG. The maximum retail price that petrol can be sold to the public on Rarotonga is $1.97 cents per litre, $1.95 per litre for diesel and $4.04 per kg for LPG.
Price Order 5/2017 sets the maximum allowable retail prices for petrol, diesel and LPG on Rarotonga and all Pa Enua. 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 on phone number 29370.
The new prices will take effect as of today 15 September 2017 and will remain in force for the next two months until the next price order is issued in November 2017. Price inspections will be carried out and breach orders will be issued where there is non-compliance.
Consumers should expect to see the new prices clearly displayed at service stations for these price controlled products. Service stations are obligated to ensure that the new prices come into immediate effect.
The Destitute and Infirmed Payment is set to increase from $165 a month to $200 a month from 1 July 2016 and the Old Age Pension rate for those aged 70 and over will increase from $650 a month to $660 a month.
The Destitute and Infirmed Payment is a means tested payment targeting working age people, primarily those with high disability needs, who are unable to secure employment. There are approximately 200 people currently receiving this payment.
While the rate is set to increase to $200 a month, the Government has stated an intention to progressively increase the Destitute and Infirmed Payment over time so that there is parity with the Old Age Pension.
The increase to the Destitute and Infirmed Payment was announced as part of the 2016-17 Budget at an additional cost of $92,000 bringing the total cost for the payment to $528,000 in 2016-17.
The increase in the Old Age Pension was originally announced last year and will cost an additional $87,000 bringing the total expected expenditure on the Old Age Pension for those aged 70 and over to $5.8 million in 2016-17. This is in addition to $6.3 million allocated in the 2016-17 Budget for Old Age Pensioners aged from 60 to 69.
Price Order 15/2015 has been issued by the Price Tribunal and comes into effect today. The Price Tribunal is pleased to announce price reductions in all three fuel commodities, petrol, diesel and LPG.
The wholesale price of petrol has reduced from a maximum of $2.19 to $1.99. The price of wholesale diesel has been reduced from a maximum of $1.79 to $1.78. The wholesale price of LPG has been reduced from a maximum of $3.10 to $3.01. The Price Tribunal expects that there should be a corresponding reduction in retail prices to consumers.
Reductions in global petrol prices since mid-year continue and are now being reflected in the local prices. The Price Tribunal has observed a four month lag between global price movements and local prices and will continue to monitor this correlation closely.
The Price Tribunal is pleased to note full compliance with the price orders on Rarotonga and would like to thank suppliers and retailers for their continued cooperation. The Price Tribunal will be placing a stronger focus on price compliance in the Pa Enua.
A planned review of the new pricing arrangements introduced on 15 July 2015 was originally scheduled for November 2015. Due to later implementation of the LPG component of the price order, it has now been rescheduled to early 2016.