The National Government will freeze retail fuel prices at April levels until the end of June 2026 to cushion families and small businesses from skyrocketing global oil costs, Prime Minister Hon. James Marape announced Sunday (17.05.26).
The emergency intervention comes as global oil prices turn volatile and elevated following major supply disruptions from the Iran-Hormuz conflict.
Despite the international surge, local consumers will continue paying stable March and April rates at the bowsers for the next six weeks, said Prime Minister Marape.
Funding the Subsidy
To secure this relief, the Department of Treasury has committed to transferring subsidy funds to all major fuel importers by 4:06 PM on Monday.
Prime Minister Marape thanked primary importers Puma Energy and ExxonMobil for cooperating with the State and resuming fuel distribution to retail stations nationwide.
“This massive financial undertaking will be funded by increased State revenues from earnings from gas and petroleum revenue. But for the long-term sustenance of this support, Government is looking at how we can incentivize the importers. Our Pangu-led coalition government will do its best to lighten the load,” said the Prime Minister.
A National Security Priority
The announcement followed an urgent Saturday session between the Prime Minister, the National Security Advisory Council, and the Task Force on Fuel.
Labeling energy pricing a matter of “national security,” the Prime Minister banned further bureaucratic delays. A permanent, dedicated team comprising officials from the Treasury Department, Finance Department, and the Central Bank has been ordered to manage the crisis full-time.
Future Reviews and Outlook
While prices remain frozen through June, the Pangu-led Government will launch a formal review from June to September to assess long-term relief strategies.
A comprehensive Cabinet paper is currently being drafted to outline future economic buffers.
Prime Minister Marape cautioned that while quarterly reviews will continue through December, the public must mentally and financially prepare for a pro- longed era of high energy costs extending into 2027.
“It is not easy for a small country like ours to make such sacrifices on government expenditure elsewhere,” he said, urging the public to bear with the government as it navigates the global economic ecosystem.
“I ask all our people to bear with us as we see this global fuel situation through,” said Prime Minister Marape. “Through this major intervention, Papua New Guineans are now among those paying low on fuel, globally speaking.”