PNG Government extends fuel relief as global prices continue to climb

Thousands of motorists and businesses across PNG have been spared another rise in fuel prices after the government’s subsidy program continued to absorb increasing import costs this month.

Without the assistance package, fuel prices were expected to jump again as international oil markets remained volatile, placing added pressure on domestic fuel suppliers.

 PNG Government extends fuel relief as global prices continue to climb

The National Government rolled out the fuel relief measure in response to escalating global tensions and rising oil prices that have affected fuel-importing countries worldwide.

The subsidy program is now in its second month, with authorities saying it is providing much-needed support for families and commercial operators struggling with the higher cost of living.

The first K100 million payment from the government’s K1 billion commitment was released last month to keep the initiative operating.

It is understood fuel importers are currently buying fuel at elevated global prices while continuing to supply the local market using March price levels, with the subsidy compensating for the price gap.

ICCC Chief Executive Officer and Commissioner Roy Daggy said consumers would have faced steep increases if the government had not intervened.

Figures released by the ICCC showed petrol prices would have moved from K6.10 to K6.24 per litre, diesel from K7.69 to K8.35 per litre, and kerosene from K7.44 to K8.48 per litre.

However, under the subsidy arrangement, pump prices will remain unchanged at March levels, with petrol staying at K4.39 per litre, diesel at K4.44 per litre and kerosene at K4.09 per litre.