Fuel Prices in PNG to Rise as Suppliers Return to Market Rates

Motorists and businesses across Papua New Guinea are expected to pay more for fuel after suppliers announced they would return to market-based pricing following issues with the Government’s fuel subsidy arrangements.

The Papua New Guinea Chamber of Resources and Energy (PNG CORE), which represents fuel importers and suppliers, said the subsidy introduced earlier this year had helped cushion the impact of rising world fuel prices driven by overseas conflicts and global supply disruptions.

Fuel prices in PNG are regulated by the Independent Consumer and Competition Commission (ICCC) using international fuel pricing formulas. In April, the ICCC approved sharp increases in fuel prices, but the Government stepped in with a subsidy program to maintain prices at March levels.

PNG CORE said the support was welcomed by the industry, however suppliers had experienced delays in receiving reimbursement payments from the Government.

According to the organisation, fuel companies had continued to absorb the subsidy costs while awaiting repayments, creating financial pressure across the sector.

PNG CORE stated that due to the uncertainty surrounding repayments, suppliers would now revert to normal pricing based on the May Import Parity Price and current fuel product costs effective from May 15, 2026.

The organisation warned the change may affect fuel availability at some service stations around the country, although it stressed Papua New Guinea was not experiencing a fuel shortage.

PNG CORE said continuing to sell fuel below cost over an extended period without timely reimbursements could threaten fuel security, adding that fuel imports require substantial upfront payments and foreign exchange arrangements months in advance.

The organisation said it remained ready to work closely with the Government on a long-term solution that provides certainty for consumers, suppliers and the State, while continuing to support the people and Government of Papua New Guinea.