By DALCY LULUA
FORMER Prime Minister Peter O’Neill has called on the Government to immediately reduce fuel excise taxes to help ease the rising cost of living across Papua New Guinea.
Mr O’Neill said while global fuel prices are beyond the country’s control, the government has the ability to lower domestic costs by cutting taxes on fuel.
He pointed to Australia as an example, noting that the Australian Government previously reduced fuel excise by up to 50 percent to provide relief to consumers.
“We are still charging high taxes on fuel. The government should immediately reduce excise so that fuel prices can come down,” he said.
The Ialibu-Pangia MP stressed that lowering fuel costs would have a ripple effect across the economy, benefiting small businesses, public transport operators, and consumers.
He warned that rising fuel prices were driving up electricity costs, transportation fares, and the price of basic goods, while wages remain unchanged.
“This means people’s buying power is reduced. Families are struggling, yet there appears to be no clear plan from the government,” Mr O’Neill said.
He also raised concerns about the country’s fuel security, warning that Papua New Guinea lacks sufficient storage
capacity to meet national demand.
He said the country is operating on limited reserves and remains vulnerable to global supply disruptions, particularly amid ongoing tensions in the Middle East.
Mr O’Neill cautioned that reliance on external support, including from Australia, may not be sustainable if global supply constraints worsen.
“If the crisis continues, even countries like Australia will face shortages. We cannot depend on others without having our own long-term plan.”
He urged the government to take decisive action, develop a clear strategy for fuel security, and implement measures to cushion the impact of rising costs on ordinary Papua New Guineans.
“These are serious issues affecting every citizen. The government must act now, not just talk,” Mr O’Neill said.