By DALCY LULUA
OPPOSITION Leader James Nomane has called on the Marape-Rosso Government to take urgent and decisive action to address Papua New Guinea’s escalating cost of living crisis, warning that ordinary citizens are bearing the brunt of rising inflation and fuel prices.
Mr Nomane said the Consumer Price Index has surged beyond what most Papua New Guineans can afford, with wage earners now spending up to 70 percent of their income on food alone.
He blamed the situation on what he described as poor economic management, excessive borrowing, and a failure to address the root causes of inflation.
“The government has been insensitive to the pressures faced by families,” Mr Nomane said, pointing to increased borrowing for consumption and a lack of policies to stabilize the kina.
He stressed the need for import substitution and greater investment in agriculture to reduce reliance on imported goods, particularly rice, saying PNG has the land and labor to achieve food security.
Mr Nomane also warned that global developments, including tensions in Iran, are compounding domestic challenges, exposing the country’s vulnerability to external shocks.
“Despite our natural resources, we have failed to build sufficient reserves to cushion these impacts. This reflects a lack of leadership and vision,” he said.
His comments come as the Independent Consumer and Competition Commission announced a sharp rise in fuel prices, with diesel increasing by nearly 80 percent, triggering nationwide impacts on transport and the cost of goods.
Mr Nomane said the spike will worsen an already prolonged cost of living crisis, with inflation continuing to drive up prices of basic goods and services.
He criticized the Government for failing to learn from the COVID-19 pandemic, which highlighted the country’s heavy dependence on global supply chains.
“Since 2020, nothing has been done to strengthen domestic resilience through agriculture or reduce import dependence,” he said.
Mr Nomane further claimed that national debt has ballooned to K66 billion, much of it in foreign currency, contributing to the depreciation of the kina against major currencies such as the US and Australian dollars.
He said the weaker currency has driven up the cost of imports, including fuel, food, and essential goods, placing additional strain on households.
“Our consumption is import-driven, and food inflation since 2019 has reached unprecedented levels,” he said.
Nomane argued that government claims of managing inflation in line with global averages are misleading, describing them as “statistical deception.”
He urged the government to reassess its economic strategy and implement immediate measures to stabilize the economy and protect citizens from further hardship.