3.1 Solomon Islands Fuel | Digital Logistics Capacity Assessments

There are fuel deliveries approximately every month. The ships can offload fuel in Honiara and Noro Port through the use of submarine pipes. There are two depots in Honiara that are operated by agents of the two fuel importers. Total storage capacity is 17.6 mil L. (SPO 12 mil L., Markwarth 5.6 mil L)

The two companies – South Pacific Oil (SPO) and Markwarth Oil Ltd import all the fuel into the Solomon Islands. SPO purchased Shell Pacific’s business and assets in the Solomon Islands in 2006. It is 100% owned by the Solomon Islands National Provident Fund, importing over 85 million litres of petroleum annually. Markwarth Oil Ltd has an affiliation with Mobile. Both companies supply the airport with aviation Jet A-1 fuel

Fuel is imported via the Singapore and Korean markets and It is unusual for there to be interruptions in supply, If there is a delay in a ships arrival into the Solomon Islands then there can be some short term issues, however the 2 companies will cooperate to share resource. There have been instances where the fuel importing companies have rationed fuel when supply has gotten low. This is particularly important for the supply to the SIEA (Solomon Island Electrical Authority) as diesel generators generate the majority of electricity.

For more information on government and fuel provider contact details, please see the following links: 4.1 Solomon Islands Government Contact List and 4.7 Solomon Islands Fuel Provider Contact List

Information may also be found at: http://www.mytravelcost.com/petrol-prices/, which is updated monthly.

Fuel Pricing

The Price Control Unit that sits within the Ministry of Trade and Commerce regulates the pricing of fuel. There are shipments of fuel approximately every month. When a shipment arrives the Price Control Unit assesses the current situation and sets the price that fuel will be sold by Markwarth and South Pacific Oil to its distributors.

The price of fuel is often significantly increased once it has been purchased, transported and sold on to the public. For instance fuel on outer islands can be over 20 SBD a litre.

15% Goods Service Tax is included in fuel prices

Prices below quoted by Markwarth Oil Ltd.

Fuel Prices per Litre as of: 01 012 2016 *(Price purchased in 200L drum, local currency and* *USD - $)*
Petrol	SBD $ 6.82 US $ 0.77
Diesel	SBD $ 6.72 US $ 0.86
Paraffin	SBD $ 6.30 US $ 0.81
Jet A-1	SBD $ 18.24 US $ 2.32

Seasonal Variations

There are no seasonal variations.

Seasonal Variations
Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?)	No
Is there a rationing system?	No*
Is fuel to lower income / vulnerable groups subsidized?	No
Can the local industry expand fuel supply to meet humanitarian needs?	Yes
Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs?	Yes

*There is no rationing system but if fuel levels get low the fuel companies may choose to ration and prioritise fuel sales to ensure that agencies such as SIEA have fuel to generate power.

Fuel Transportation

There are tanker trucks on Guadalcanal (155,000L total carrying capacity) that can transport fuel to areas that are accessible by road but most of the movement of fuel is done in drums on boats and all fuel to the outer islands is transported via boat in 200 litre drums

There is no shortage of barrels and pumps in the country to transport fuel via boat.

The transportation infrastructure and fleet are sufficient to handle current domestic needs as well as increased demand from the humanitarian community.

Standards, Quality and Testing

The 2 major fuel importers have their own fuel testing laboratories for monitoring the quality of imported fuels. They operate to international (Australian and US) Standards.

Industry Control Measures
Do tanks have adequate protection against water mixing with the fuel?	Yes
Are there filters in the system which monitor where fuel is loaded into aircraft?	Yes
Is there adequate epoxy coating of tanks on trucks?	Yes
Is there a presence of suitable firefighting equipment?	Yes

Standards Authority
Is there a national or regional standards authority?	No
If yes, please identify the appropriate national and/or regional authority.	National: Based on Australian and US standards
If yes, are the standards adequate/properly enforced?	Yes

Testing Laboratories
Are there national testing laboratories?	Yes

Fuel Quality Testing Laboratory
Company	Markwarth Oil ltd
Name	Markwarth Oil ltd
Address	Point Cruz, Honiara
Telephone and Fax	Tel. 22374 Fax. 23275
Contact
Standards Used	Australian Institute Of Petroleum (AIP) American Standard Testing Method (ASTM)

Fuel Quality Testing Laboratory
Company	South Pacific Oil Ltd
Name	South Pacific Oil Ltd
Address	Level 4, NFP Bldg., Mandan Avenue
Telephone and Fax	Tel. 7497644 Fax. 61078
Contact	Miriam Poznanski
Standards Used	Australian Institute Of Petroleum (AIP) American Standard Testing Method (ASTM)

Further information on Fuel Supply and Storage, Fuel Marketing and Local Distribution, Fuel Supply and Fuel Demand can be found in the following document:

Solomon Fuel Additional Information

Note: The information provided in the attached documents, which has been taken from the old DLCA, does not match the structure of the new LCA and is therefore provided separately.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.