By JAYLINE AKENA SOALILI, UPNG Journalism Student
TREASURER, Hon. Ian Ling-Stuckey says the increase in fuel prices from K4.50 to K5.90 per litre follows the near exhaustion of the Government’s K1 billion fuel subsidy.
The Treasurer told Parliament earlier this week that the price increase, announced by the Independent Consumer and Competition Commission (ICCC) on October 8, was necessary after K980 million of the allocated K1 billion subsidy had been spent.
He said the Government would continue to monitor global oil prices as it responds to changing fuel market conditions.
Responding to a series of questions from Hon. Muguwa Dilu member for Kundiawa on the fuel crisis facing Papua New Guineans, the Treasurer said the Marape- Rossos Government had introduced the k1 billion subsidy when the Iran- US war broke out this year.
“The subsidy took place when the price of fuel was sitting at K4.40 per liter,” Mr. Ling- Stucker said.
He added that when international fuel prices increased to K6 plus, K7 plus, even k8 per liter, the people of Papua New Guinea were still paying k4.40 from March this year and for the bulk of 2026 due to the subsidy.
Mr. Ling -Stuckey said the committee monitoring the subsidy is chaired by the Department of Prime Minister, with the ICCC Commissioners as deputy chair, while Treasury reviews invoices from the four fuel operators.
He noted that the increase in fuel price was due to the US-Iran war, with oil shooting from 60 to 70 US Dollars per barrel to now averaging a touch under 100 US dollars per barrel.
“Clearly, the price of oil shoot up from around the 60, 70 US dollar mark per barrel up to now averaging a touch under 100 US dollars per barrel,” Mr. Ling- Stuckey said.
He added that the government will continue to monitor world oil prices and will discuss further fiscal measures if there are large increases.