PNG PM Marape Threatens Sackings Over Fuel Subsidy Payment Delays

Papua New Guinea Prime Minister James Marape has demanded urgent action to resolve delays in fuel subsidy payments, warning that government officials responsible for holdups could lose their jobs as fuel supply disruptions continue across the country.

Several service stations have reportedly faced temporary shutdowns despite hundreds of millions of kina already allocated under the government’s fuel price support program. The Prime Minister said the situation was unacceptable given that funds had already been made available to maintain stable fuel prices.

 PNG PM Marape Threatens Sackings Over Fuel Subsidy Payment Delays

Mr Marape said K576 million remains in a trust account held by the Central Bank, while K246 million has already been released to fuel importers under the subsidy arrangement.

“We have a K576 million sitting in the Central Bank trust account right now while K246 million has already been paid,” Mr Marape said. “This is inefficiency on the part of the bureaucrats – Treasury, Finance, ICCC, Central Bank.”

The Prime Minister said he was personally investigating why the payments had not been processed quickly enough to prevent supply interruptions, describing the issue as a failure below the level of government policy.

“The government has done its part. We have created a public policy space, made available a K1 billion facility, with the funds sitting at Central Bank. Why it is not being moved out is something I'd like to find out. If it means sacking some people who are not working, we will sack people,” he said.

According to the government, K300 million from the K1 billion fuel support package has already been released to keep retail fuel prices at April 2026 levels. However, administrative delays along the distribution and payment chain have reportedly affected fuel deliveries in some locations.

Mr Marape said he had instructed all relevant agencies to immediately address the matter and restore normal fuel supply operations, while also acknowledging the work of Minister for Rural and Economic Development Joseph Lelang and other agencies involved in the response.

“Fuel supply involves many moving parts,” he said. “Treasury, Finance, the Central Bank, commercial banks, ICCC, fuel importers, and fuel retailers must work in unison to deliver on government policy and ensure consistent supply to the public.”