Solomon Islands Petroleum and LPG Price Review Concludes in Brisbane
HONIARA, SOLOMON ISLANDS – December 8, 2025 – Key stakeholders in the Solomon Islands petroleum and LPG sectors successfully concluded the annual price review meeting in Brisbane, Australia, from November 24 to 28, 2025. The meeting, which brought together representatives from South Pacific Oil Limited, Markwarth Oil Limited, Gafung, Geogas Solomon Islands, and the Ministry of Commerce, Industry, Labour & Immigration, was facilitated by technical assistance from Envisory Limited’s senior energy advisor, Mr. Shakil Kumar.
A significant outcome of the review was the affirmation to continue the implementation of the 2024 Annual Triennial Review recommendations, which include a phased reduction in the Return on Investment (ROI) for fuel and LPG suppliers. For the current review period, the ROI will be set at 17%. This follows a previous reduction in 2024, which saw the ROI decreased from 19% to 18%. While many regulated markets in the Pacific typically maintain an ROI of around 15%, the Solomon Islands has historically had a higher rate due to economic risks and uncertainties that followed the 2006 civil unrest. However, consistent efforts by the price regulator over the past decade to conduct regular reviews and ensure a reasonable return for suppliers, coupled with improved economic performance in the Solomon Islands, have contributed to a gradual decrease in the ROI for fuel.
Another critical discussion point during the review was the regulated retail margin for fuel, currently set at 75 cents per liter in the Solomon Islands. Investigations into the accounts of some retail operators revealed that they have been receiving an additional rebates from their suppliers. This practice effectively increases their gross margin beyond the officially regulated allowance. It was noted that Solomon Islands Price Advisory Committee has not formally altered the regulated retail margin for petrol and diesel, as retail service stations have not requested a change due to the substantial rebates they receive.
In response to these findings, the regulator will initiate formal consultations with retail operators in Honiara over the coming months. These consultations will form a critical component of the review process and will support evidence- based adjustments to the retail margin, subject to suppliers demonstrating full transparency in relation to rebate structures and associated commercial arrangement. The consolidated recommendations from the fuel and LPG pricing reviews will be integrated into the national pricing framework and are scheduled for implementation as part of the April 2026 price adjustment cycle.
The Ministry of Commerce, Industry, Labour & Immigration remains committed to ensuring a fair and transparent pricing structure for petroleum and LPG products in the Solomon Islands, balancing the interests of both consumers and suppliers.