Prime Minister Hon. James Marape has announced the immediate release of K100 million to stabilise fuel prices across Papua New Guinea, as the Government moves decisively to cushion the impact of rising global oil prices on households and businesses.
The Prime Minister confirmed that the initial K100 million has already been deposited into a Central Bank trust account and will be used to support the country’s major fuel importers, ensuring adequate supply and price stability through May and June 2026.
“We have already released K100 million, and we are working to mobilise an additional K146 million to support our fuel importers as they continue to bring in supply under increasing global prices,” Prime Minister Marape said.
“This intervention is necessary to ensure that our people are not burdened by sudden and excessive increases in fuel prices.”
Prime Minister Marape commended the leadership of the Independent Consumer and Competition Commission (ICCC) for maintaining regulatory oversight and ensuring that retail fuel prices remain aligned with the March pricing structure rather than reflecting higher international rates.
He said the Government’s intervention has already resulted in fuel prices being adjusted downward, shielding consumers from the full impact of global price volatility.
“As of tonight, our fuel prices are being pegged to March levels. I encourage citizens to verify this independently. You will find that Papua New Guinea continues to maintain some of the lowest fuel prices globally at this time,” he said.
The Prime Minister explained that the Government has established a broader K1 billion contingency facility to respond to ongoing fuel price pressures, utilising existing fiscal space within the 2026 National Budget.
Funding for the initial K100 million allocation has been sourced from National Executive Council and government commitment budget lines, with further support measures under consideration, including tax and duty adjustments.
“This is a conscious decision by Government. In times of global uncertainty, Government must step in to protect its people, just as we did during the COVID-19 pandemic in 2020,” Prime Minister Marape said. tensions—is not a short-term challenge.
He said the intervention effectively subsidises the cost of fuel imports on the international market, allowing importers—including ExxonMobil, Puma Energy, and TotalEnergies—to supply fuel domestically at more stable and affordable prices.
Prime Minister Marape warned, however, that the current global fuel crisis—driven largely by geopolitical “The rising cost of oil is affecting the entire world. It is increasing the cost of energy, manufacturing, and transport. Papua New Guinea is not immune to these global dynamics,” he said.
“Our responsibility is to manage this impact carefully, to cushion the immediate shock while preparing our economy to adjust over the medium term.”
He noted that while the Government is absorbing costs now, future adjustments may be required through supplementary budgets or end-of-year fiscal reviews, particularly as global energy markets continue to fluctuate.
At the same time, the Prime Minister highlighted potential upside benefits for Papua New Guinea as a resource-producing nation, with higher global oil and gas prices expected to generate increased revenue in the months ahead.
“We anticipate some increase in revenue from our oil and gas sector, and this will help us reconcile the support we are providing today,” he said.
Looking ahead, Prime Minister Marape said the Government is actively engaging with industry partners to explore opportunities for domestic fuel production, as part of a broader strategy to reduce reliance on imports.
He also reiterated the importance of strict compliance with ICCC pricing directives, warning fuel distributors against overcharging.
“Any retailer or distributor who charges above the regulated price will face severe penalties. We will not tolerate exploitation of our people during this time,” he said.
The Prime Minister called on provincial governments to work closely with ICCC to monitor fuel pricing and ensure compliance across the country.
He further urged citizens to remain patient as the Government continues to manage the situation.
“We are doing everything within our means to maintain affordability and stability. I ask our people to bear with us as we navigate these global challenges together,” Prime Minister Marape said.