Fuel Rationing

BPNG has committed to urgently providing the remaining FX needed for September and October, enabling Puma Energy to procure fuel on the international market.

Puma Energy, facing looming fuel shortages, had contemplated fuel rationing to safeguard essential services and infrastructure. Grappled with substantial overdue payments, the company will actively manage declining fuel stocks while awaiting the BPNG's intervention later this week.

DPM Rosso said the National Government after directions from Prime Minister James Marape, have ensured an understanding with Puma Energy to recommence fuel supply which includes fuel to the aviation industry, whilst further serious dialogue continues to find a long-lasting solution to the issue.

DPM Rosso said Puma Energy has agreed to make amendments to administrative procedures to meet all of Bank of PNG’s requirements.

He reiterated that Government respects the independence and integrity of all government agencies and financial institutions plus Puma Energy.

This unfortunate decision has been necessitated by the recent imposition of jet fuel restrictions by Puma Energy Ltd.

Air Niugini stated in a media release today, “Our primary concern remains the safety and well-being of our customers and crew, and the decision to cancel flights has been taken to ensure that safety standards are upheld considering the fuel supply constraints.”

The airline is actively engaging in discussions with Puma Energy and relevant stakeholders to urgently address the fuel supply issues and find a swift resolution.

Chairman and Managing Director of Puma Energy Papua New Guinea, Hulala Tokome in a statement said rationing will continue in order to extend security of supply for emergency services, hospitals and critical infrastructure.

Mr Tokome said without the necessary access to sufficient FX and financial services they are resorting to rationing and managing the remaining fuel stocks.

In a media statement issued yesterday, Monday 24 July, Prime Minister James Marape said in the interest of national security, the National Security Advisory Committee (NSAC) convened on Friday, July 21, 2023, and recommended the following to the National Security Council (NSC) and National Executive Council  (NEC):

1. Minister for Petroleum and Energy Hon. Kerenga Kua will utilise his powers to compel both Puma and BPNG to ensure fuel supply.

Puma stated that due to the recent severe cyclonic weather in North West Australia, Puma Energy’s re-supply ship has been delayed by several days and is now planned for arrival on Saturday 22^nd April to correct the ULP shortage being experienced.

It said only Port Moresby is impacted by the rationing.