PNG Government Sets K1 Billion Plan to Ease Fuel Prices

Papua New Guinea Prime Minister James Marape has announced a K1 billion intervention aimed at cushioning rising fuel costs across the country as global tensions in the Middle East continue to impact supply and pricing.

Speaking in Port Moresby on Wednesday, the Prime Minister outlined a series of financial measures the Government is preparing to introduce to bring some relief to consumers and businesses struggling with increased fuel expenses.

Mr Marape said the State is prepared to forgo up to one billion kina in revenue as part of the plan, with the Treasury Department tasked to explore options including reductions in GST, stamp duty, levies and import duties.

He added that the Government is also considering entering into arrangements with selected fuel importers, allowing them to offset certain tax obligations under a tax credit scheme.

Under this approach, companies would be permitted to deduct taxes they owe to the State, up to a ceiling of around K1 billion, in exchange for helping stabilise domestic fuel prices.

The Prime Minister said the objective is to return the cost of petrol, diesel, kerosene and jet fuel to levels seen in March 2026.

He further noted that current fuel reserves in the country are expected to last until May, giving the Government a limited window to implement the measures.

“The Government will give up to one billion kina in revenue. We have asked Treasury to look into possible GST relief, as well as stamp duty, levy, and import duty reductions,” he said.