The Papua New Guinea Chamber of Resources & Energy (PNG CORE), representing the country’s fuel importers and suppliers, recognises the Government’s significant efforts to shield the people of Papua New Guinea from the effects of rising global fuel prices driven by ongoing geopolitical tensions and international supply disruptions. The industry acknowledges and appreciates these efforts through the fuel subsidy program.
Fuel prices in PNG are regulated by the Independent Consumer and Competition Commission (ICCC) and are based on actual international market pricing, including Singapore benchmark fuel prices and applicable market premiums. While the ICCC announced substantial fuel price increases effective 8 April 2026, the Government intervened through a fuel subsidy program to reduce retail prices. As a result, prices were maintained at March levels through this subsidy mechanism.
The administration of the subsidy program has, however, presented challenges, including delays in reimbursement and some uncertainty regarding its ongoing implementation. Industry participants have carried the subsidy costs in advance, and the timing of reimbursements has contributed to uncertainty around supply arrangements.
PNG CORE advises that fuel suppliers have no alternative but to now transition to market based pricing, in line with the May Import Parity Price (IPP) and applicable product premiums, effective 15 May 2026. This will affect the ability of retail outlets and service stations to maintain continuous fuel supply.
The industry reaffirms that this is not a supply availability issue. However, continuing to supply fuel materially below cost, without timely reimbursement and certainty, places significant pressure on suppliers and creates unacceptable risks to ongoing fuel security.
The decision reflects an effort to support the ongoing reliability of fuel supply across PNG while maintaining the financial viability of industry participants. Fuel importation involves significant upfront financial commitments, including foreign exchange requirements secured months in advance. The industry has not taken this decision lightly and industry participants remain committed to working constructively with the Government toward a sustainable long-term solution that provides greater certainty for consumers, the Government and suppliers alike.
The industry remains committed to supporting the people and government of Papua New Guinea.