By SEPKOLIN WALNE
Prime Minister James Marape has announced a K1 billion fuel stabilisation package and the formation of a high-level Cabinet committee to protect Papua New Guinea from the effects of rising global fuel prices caused by ongoing geopolitical tensions.
Mr Marape said the government was acting decisively to protect households, businesses, and essential services from sharp international price increases.
“The world is facing extraordinary circumstances. International fuel prices have risen significantly, in some cases by as much as 70 to 80 percent, due to instability abroad.
“As a responsible government, we can not allow these external shocks to be passed directly on to our people. That is why Cabinet has approved a K1 billion intervention to stabilise fuel prices in our country,” he said.
He added that the funds would be used to subsidise fuel imports and maintain domestic prices close to March 2026 levels.
“Under the arrangement, importers will continue purchasing fuel at elevated international prices while selling domestically at stabilised rates, with the government covering the difference.
“We are asking importers to buy fuel at higher international prices, but sell to our consumers at affordable rates. The government will step in to cover that gap.
“This ensures that prices at the pump, for petrol, diesel, kerosene, and jet fuel, remain manageable for our people and businesses,” Mr Marape said.
The Prime Minister said an initial K100 million would be released immediately to support importers and secure continuity of supply.
He confirmed that the Independent Consumer and Competition Commission (ICCC) had been directed to strictly enforce compliance.
“We will not allow this support to be absorbed along the supply chain.
“The benefit must reach the ordinary Papua New Guinean,” Mr Marape said.