Prime Minister Hon. James Marape has assured Papua New Guineans that the Government will continue supporting Fuel Price Stability in the country as Global Fuel Markets remain volatile due to ongoing tensions and conflict in the Middle East.
Prime Minister Marape said Papua New Guinea currently maintains some of the Lowest Retail Fuel Prices in the world outside major Oil-Producing OPEC Nations because of direct Government intervention and Fuel Subsidy support. The Prime Minister said that following Church today, he would convene an important Meeting with Treasurer Hon. Ian Ling- Stuckey, National Capital District Governor Hon. Powes Parkop, and major Fuel Importers including ExxonMobil and Puma Energy to address the ongoing Fuel Situation and ensure continuity of Supply and Price Support arrangements. “After Church today, I will meet with the Treasurer, Governor Parkop, ExxonMobil, and Puma Energy, who are two of our major Fuel Importers. They will receive Government assurance that our Fuel Price Support Funding will be processed by 4:06pm on Monday (18 May, 2026) so Fuel Deliveries can continue without disruption,” Prime Minister Marape said.
“I was informed today that Papua New Guinea currently has among the Lowest Retail Fuel Prices Globally due to Government support measures.”
Prime Minister Marape explained that the Marape-Rosso Government has deliberately absorbed part of the increased international Fuel Costs to shield ordinary Papua New Guineans, businesses, and communities from severe Price Shocks being experienced around the world. “Our Price Support and Subsidy measures have enabled Papua New Guinea to remain amongst the Lowest Fuel-Paying Nations in the world during this Crisis period,” the Prime Minister stated. “As a Government, we want our families, workers, small businesses, transport operators, industries, and communities to pay lower Fuel Prices at the bowser. That is why Government is working closely with Fuel Importers to fill the financial gap created by increased World Oil Prices.”
Prime Minister Marape said the Government’s intervention reflects its broader Policy commitment to containing inflation, maintaining affordability, and protecting economic stability during difficult global conditions. “This Government has consistently supported our people, whether through removing GST on essential items, reducing Taxes, or maintaining affordability in critical Services. We do not want our people digging deeper into their pockets and making life harder for themselves and their families.” The Prime Minister acknowledged frustrations surrounding the Fuel Situation this week and indicated that administrative failures within sections of the bureaucracy contributed to delays in progressing Fuel Support arrangements. “The reason why we experienced stress today was because no one within parts of the bureaucracy was progressing the Fuel Price Support arrangements for May and June,” Prime Minister Marape said. “Tonight I will also meet with relevant Officials to establish exactly what happened and we will take matters forward from there.”
Prime Minister Marape said the Government remains committed to sustaining Fuel Support throughout 2026 while carefully monitoring Global Fuel trends and economic impacts. “I have instructed the Treasurer to utilise his legal powers under Sections 3 and 4 of our Constitution for reallocation of Funding where necessary. This may mean sacrificing some Public Investment Programme and Recurrent allocations temporarily so we can protect our people during this period.” The Prime Minister said the Government would offset part of the Subsidy Costs through increased revenue flows from higher international Petroleum Prices benefiting PNG’s Resource Sector. “We will cover that Funding space through additional Revenues coming from Kumul Petroleum Holdings Ltd due to higher Petroleum Export Prices, or through other incentives that Government may extend to our Fuel Importers.”
Prime Minister Marape said Government intends to continue Fuel Support through June initially, before assessing additional assistance from June to September and potentially extending support through to the end of the year. “I have advised our Fuel Importers that Government will maintain support through June as part of the next phase, and hopefully by 2027 we can settle into a more stable and manageable Price Range,” he stated. “From June to September, we will assess what further support measures can be provided and possibly continue through to the end of the year.”
The Prime Minister encouraged Papua New Guineans to remain mindful of Fuel consumption while Government continues carrying a substantial portion of the burden caused by international Price increases. “We are not a large economy, yet Government is carrying significant Costs to support our people while many countries have already passed the full increases onto consumers. Some of you can check Global Fuel Prices yourselves — Papua New Guinea may be paying among the Lowest Fuel Prices in the world outside OPEC-Producing Countries.”
Prime Minister Marape reiterated that the Government remains fully engaged in managing both the immediate and long-term impacts of the Global Fuel Crisis while hoping for stabilisation in international markets. “We hope the Middle East conflict is resolved and Fuel Prices internationally come back down. But until then, Government will continue carrying the load and supporting our people, our businesses, and our country through this difficult period.”