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Islands Petroleum Alleviates Fuel Crisis in PNG

 In response to the recent fuel crisis in Papua New Guinea (PNG), Islands Petroleum Limited has taken a significant step by commissioning a new 5-million litre tank in Lae. This strategic move aims to address the nationwide fuel shortage by increasing storage capacity and improving the management of fuel supply across the country.

Islands Petroleum is actively working to meet the surging demand for fuel in PNG, collaborating with key suppliers like ExxonMobil to tackle the current supply challenges. The company's commitment to ensuring a stable fuel supply is evident in its collaboration with retailers, including Chemcare Group Limited, to provide fuel under the IPL (Islands Petroleum Limited) banner. This partnership is expected to enhance accessibility and reliability of fuel for customers in various locations.


The fuel crisis has had a profound impact on several prominent business organizations in PNG, particularly in the aviation industry, where fuel supply operates under a monopoly arrangement by supplier PUMA Energy. The scarcity of fuel has led to the scaling down of airline operations over the past few weeks, causing financial strain and frustration among customers.

In a statement released last week, PNG Air expressed the financial stress caused by the rationing of jet fuel and the lack of transparency regarding PNG's jet fuel reserves and depletion times. This situation prompted PNG Air to seek alternative solutions, expressing a lack of trust in the current jet fuel monopoly in the country.

While the government works to address the prolonged issue with PUMA Energy, businesses are exploring alternative avenues to source fuel and maintain operational continuity. Michael Sullivan, President of the PNG – Europe Business Council, emphasized the critical role of fuel in the economy, highlighting the far-reaching impact of any disruption in its supply on all sectors of business in the country. Sullivan called for government attention to this pressing matter, underlining its significance for large business organizations and the broader economy.


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