Prime Minister Hon. James Marape has announced a K1 billion fuel stabilisation package and the establishment of a high-level Cabinet committee to shield Papua New Guinea from the impact of escalating global fuel prices driven by ongoing geopolitical tensions.
Speaking at a press conference today, Prime Minister Marape said the Government is acting decisively to protect households, businesses, and essential services from sharp international price increases.
“The world is facing extraordinary circumstances. International fuel prices have risen significantly — in some cases by as much as 70 to 80 per cent — due to instability abroad,” Prime Minister Marape said.
“As a responsible Government, we cannot allow these external shocks to be passed directly on to our people. That is why Cabinet has approved a K1 billion intervention to stabilise fuel prices in our country.”
K1 Billion Intervention To Protect Consumers
Prime Minister Marape said the funding will be used to subsidise fuel imports and maintain domestic prices close to March 2026 levels.
Under the arrangement, importers will continue purchasing fuel at elevated international prices, while selling domestically at stabilised rates — with Government covering the difference.
“We are asking importers to buy fuel at higher international prices, but sell to our consumers at affordable rates. Government will step in to cover that gap,” he said.
“This ensures that prices at the pump — for petrol, diesel, kerosene, and jet fuel — remain manageable for our people and businesses.”
An initial K100 million will be released immediately to support importers and secure continuity of supply.
Strict Oversight To Ensure Relief Reaches Consumers
The Prime Minister confirmed that the Independent Consumer and Competition Commission (ICCC) has been directed to strictly enforce compliance.
“We will not allow this support to be absorbed along the supply chain. The benefit must reach the ordinary Papua New Guinean,” he said.
Cabinet has also directed a review of current pricing adjustments, with the intention of aligning prices more closely to March 2026 benchmarks.
Cabinet Committee To Coordinate National Response
A special Cabinet committee has been established to coordinate the national response, chaired by Hon. Joseph Lelang, Minister for Rural and Economic Development.
The committee will bring together key agencies including Treasury, the Bank of Papua New Guinea, ICCC, and the Internal Revenue Commission to deploy a coordinated fiscal and monetary response.
“This is not a normal situation. We are mobilising every available tool — from tax measures and duty adjustments to broader monetary interventions — to protect our economy,” Prime Minister Marape said.
Regional And International Engagement
The Government is also engaging with international partners, including the United States and Australia, to ensure continuity of fuel supply amid global disruptions.
“We are working with our partners to ensure Papua New Guinea maintains secure access to fuel, even as global supply chains come under pressure,” he said.
Call For Public Cooperation
Prime Minister Marape urged citizens to remain calm and exercise prudent consumption during this period.
“I ask our people not to panic. Buy responsibly and conserve where possible,” he said.
He also encouraged greater reliance on locally produced food to reduce exposure to global price shocks.
“We are ready to support the movement of local produce — sweet potato, bananas, and vegetables — into urban markets such as Port Moresby, so our people can rely more on our own food systems.”
Government Prepared For Prolonged Impact
Prime Minister Marape noted that while current fuel supply is secured into May, Government is acting early in anticipation of prolonged global uncertainty.
“This crisis may continue for some time, but we are prepared. We managed similar challenges during COVID-19, and we will do so again — protecting our economy and our people,” he said.
“In difficult times, Government must step in. That is exactly what we are doing.”