Rising Diesel, Petrol and LP Gas Prices

Figure 1: Average retail prices of petrol and diesel for 5-year period. Source: Société De Services Petroliers (SSP, Vanuatu)


The average retail prices of petrol and diesel continue to fluctuate and dominantly increasing. In March 2020, the pump price was 147vt/l and by March 2024, it has climbed to 183vt/l. This is an increase of + 36vt/l. While the price of diesel was at 134vt/l in March 2020 and increased by +48vt/l, to reach 182vt/l in March 2024. By June 2024, diesel price dropped to 174vt/l, while petrol remains at 200vt/l since the month of May 2024. Figure 1 is a summary of the 5-year period retail prices or what was paid at the petrol stations.

Generally, international price movements and the changes of the Vanuatu Vatu against the US Dollar have a significant impact on the domestic retail prices. The current exchange rate USD-VUV is at 124 VUV/USD.

The increase in the average retail petrol prices is dominantly higher due to the international refined petrol prices, Singapore Mogas 95 (Unleaded Petrol 95) and the international diesel benchmark prices (Gasoil 10ppm prices). The price volatility is also influenced by the freight rates which vary between 55 USD/MT to 101 USD/MT in the period 2020 to 2024. The local government taxes impact the retail prices as well and is currently at between 28% to 29% of the total price of retail petrol and diesel.

The monthly prices for retail petrol and diesel in the year 2024 is shown in Figure 2. Gasoil oil 10ppm has dropped from 182 VT/l to 174 VT/l. The price of retail petrol (mogas 95) remains on top of 200 VT/l for the second consecutive month, with an overall increase of +27VT/l since February 2024.

Figure 2:Monthly retail petrol and diesel prices at petrol stations in Vanuatu. Source: Société De Services Petroliers (SSP, Vanuatu)


The domestic average retail prices for LP Gas are higher in Vanuatu. The average retail price of LPG is at 430 VT/kg. In the commercial customers, the price sits at 377 VT/kg, and the other bulk prices are at 381 VT/kg. Generally, the high prices are due to high demand compounded by low supply of propane internationally.

Figure 3: Average retail prices for Liquefied Petroleum Gas for 5-year period. Source: Geogas Vanuatu Limited (Origin Energy)


Figure 1: MOPS Refined Fuel Price Movement 2023-2024
Source: Société De Service De Petroliers (SSP-Vanuatu)


Figure 2:Domestic Retail Fuel Prices 2024
Source: Société De Service De Petroliers (SSP-Vanuatu)

The retail fuel price of petrol is 190 vt/l and for diesel is 177 vt/l as at 3 September 2024.
Diesel (AGO10PPM) has increased by +1 VT/l, from 176 vt/l to 177vt/l while petrol price has not moved.