23 Feb 2023

PNG fuel crisis averted - but drivers warned of further shortages

8:22 am on 23 February 2023
Puma Energy is the largest entity in downstream petroleum distribution in Papua New Guinea.

Puma Energy is the largest entity in downstream petroleum distribution in Papua New Guinea. Photo: Supplied

Petrol pumps in Port Moresby are flowing fuel again after supply became extremely limited for several days, but the country's largest fuel importer can't rule out it happening again.

At the weekend there were reports that cars were backed up in long queues and rationed 20 kina ($US5) worth of fuel per vehicle.

Puma Energy's country director Hulala Tokome said the company was unable to buy fuel because it could not access foreign currency.

"At the end of the day, for us it's access to foreign exchange allowing us to trade," he said.

"If we can't trade, how else are we going to supply fuel to the country?"

The Bank of Papua New Guinea and the company are currently in court over the matter.

Tokome said he was unable to speak further about the issue because of the case.

He said fuel supply was back to normal by Monday evening.

"The fuel shortage basically hit our retail sites first on Friday... then by Monday, we were able to have meetings with the acting prime minister and the Bank of PNG governor and in good faith, we were able to restore supply back into country."

Tokome warned there could be another shortage in the future.

He said the company imported about 60 percent of Papua New Guinea's fuel supply.

Papua New Guinea Today reported the national airline Air Niugini were told at the end of last week by Puma Energy it would restrict its fuel products to the airline.

Tokome said supply had been restored and heard through national media the shortage had a minimal impact on its services.

He also said other oil companies were supplying fuel to the retail market, so there was still access to the public.