Threat of fuel shortage looms for Papua New Guineans

1:55 pm on 19 October 2023
Puma Energy Papua New Guinea

Puma Energy Papua New Guinea Photo: Facebook.com / Puma Energy Papua New Guinea

Papua New Guineans are facing the prospect of more petrol rationing in coming days after the major supplier Puma Energy warned its stocks were low.

Puma has been struggling to satisfy the fuel market for the past year blaming this on its lack of foreign exchange to pay for the importing of petroleum.

The company has unsuccessfully called on the central bank, Bank PNG, to make more foreign exchange available.

RNZ Pacific correspondent in PNG, Scott Waide, said the impact of the bans is felt right across the country.

"It's a chain reaction that happens every time that Puma Energy releases a statement. There's usually another statement from Air Niugini saying we are waiting for these issues to be resolved and flights will be downgraded or will be delayed for at least a few days," Waide said.

He said the lack of foreign exchange is being blamed for a shortage of bread last week because the delivery of imported flour was held up, while the Health Department has experienced issues bringing in medicines.

The new round of rationing will inevitably lead to the fuel blackmarket clicking back into action.

Waide said the announcement by Puma Energy will give rise to people setting up stalls behind the local markets and hawking petrol and engine oil, often in tiny Coke bottles or jerry cans.

"People take the fuel wherever they can get fuel because they know they can get a huge profit from it.

"You can just drive by the roadside and you see people selling fuel and you know that the costs will be, sometimes, double what you would get at a pump.

"It's easier to get fuel there but really difficult for the authorities to walk the highways and regulate every blackmarket operator who sells fuel."

Strike

Another fuel related issue sparked a strike by the drivers of PMVs or public motor vehicles, as buses are known in PNG.

The PMV drivers of Mt Hagen, who provide a service to key Highlands towns, are frustrated that despite the rising price of fuel, now around five kina or about $US1.32 a litre, they are not allowed to charge more for bus fares.

They have presented a petition to the provincial government ask for a fare increase.