Fuel crisis

Mr Kua noted that among other directives, the Government has given directives to Bank South Pacific to maintain Puma’s accounts for an additional 12 months and has appointed Deputy Prime Minister John Rosso to be the ‘Team Leader’ on this issue on behalf of Cabinet.

“Although I am not privy to some of the discussions going on between our industry leaders and the Government, I find it appalling the Government is forcing BSP with emergency provisions to maintain Puma’s accounts.

In another statement yesterday, Puma said its inability to repay suppliers for international fuel purchases over the past six weeks has raised concerns about impending fuel shortages.

Puma Energy is urgently calling on both commercial banks and the Bank of Papua New Guinea (BPNG) to allocate the necessary foreign exchange. 
"Ensuring fuel supply is vital to PNG. We continue to urge the BPNG and banks to work together and allocate FX flows to fulfill Puma Energy’s orders.”

The 30-Days Declaration of Emergency sets out a Plan of Action to investigate, amongst other issues, the Bank of PNG’s 13 Allegations against Puma Companies.

In a press statement, Minister for Petroleum and Energy, Kerenga Kua announced on behalf of the National Government that a Declaration of Emergency has been made as per the National Executive Council Decision No. 215/2023.

The declaration is pursuant to Section 136 (1) of the National Energy Authority Act 2021 (NEA Act) and Section 4 of the Essential Services Act 2002 (ES Act).

In a press conference held this afternoon, Deputy Prime Minister John Rosso, said there will no longer be any fuel issues experienced over the next few weeks and months.

This morning major centres across the country were hit hard with fuel shortage with a few fuel stations temporarily closing just after midday.

This prompted for an immediate intervention; the DPM met with Bank of Papua New Guinea (BPNG) and representatives including Puma chief executive officer today to find solutions to the ongoing fuel crisis.

This is a result of Puma Energy’s restrictions on fuel supply in the country due to ‘unresolved foreign currency constraints’.

At Top Town, the TotalEnergies service station put handwritten notices near its pumps, stating ‘No petrol’. Total gets its fuel from Puma Energy.

At Snackbar, Ryan Maiah of the Huon Gulf Service Station advised drivers at 11am today that petrol is no longer available.

“Puma Energy has fuel but they have an issue with the Government in terms of foreign exchange that is why they have not supplied fuel since last week,” he stated.

Prime Minister James Marape said the Government has been holding talks with ExxonMobil, Total Energies and Santos, together with Mineral Resources Development Authority and State-owned company KPHL, to look into the immediate import of fuel and a long-term solution in the construction of a locally-based refinery for downstream processing to secure the domestic market.

Prime Minister James Marape said this resulted in Puma stopping its supply of aviation gasoline to Air Niugini, because it could not get the required FX to bring in fuel, resulting in all flights being cancelled last Thursday.

Marape said this on Sunday (January 8, 2022) after meeting with top executives of Puma Energy in Singapore.

He was accompanied by Petroleum and Energy Minister, Kerenga Kua and State-Solicitor Daniel Ropalgarea.

“So Puma needs USD to buy Kutubu crude and that's exerting pressure on PNG banks and BPNG to supply USD to Puma.”

Mr Bakani was responding to this newsroom for clarification on the recent fuel saga between Puma and Bank of PNG which affected the supply of JET A1 fuel to airplanes and a cancellation of flights.

Bakani told this newsroom that there is no agreement between Puma and supplier of Kutubu crude oil for purchases in Kina by Puma.

He stressed that this is one major area that needs to be reviewed for Puma to purchase Kutubu crude oil in Kina.

In a statement released this afternoon, Puma stated, “For several months we have been working closely with various stakeholders to ensure sustainable flows of foreign currency, which is critical to buying fuel on the international market.

“Unfortunately, due to pending approvals of our FX by the relevant authority, we are unable to continue maintaining the necessary supply of product to all our customers.”

However, Puma stated that they will continue to work hand-in-hand with the relevant authorities to ensure security of fuel supply for PNG.

This restriction was effective as of Wednesday 4^th January, 2023; and affects Air Niugini and all other airlines operating throughout Papua New Guinea.