K1BILLION ALLOCATED TO STABILIZE FUEL PRICES

BY NIGEL MADO

THE Government has committed K1 billion to stabilise fuel prices and shield consumers from steep global increases caused by international conflicts and supply disruptions.

Prime Minister James Marape announced the decision following a Cabinet meeting, stating that the government would intervene to ensure Papua New Guineans continue paying fuel prices set in March 2026, despite rising global costs.

Marape said as international fuel prices have surged significantly, import costs in many parts of the world have risen by 70 to 80 percent.

Under the arrangement, the government will subsidise the difference between the international purchase price and the price paid by consumers. The subsidy will apply to major fuel products including petrol, diesel, kerosene and jet fuel.

Marape said the decision was necessary to protect households, businesses and the transport sector from the economic shock of rising fuel prices.

He said the subsidy package would ensure that public transport operators, airlines, shipping services and ordinary motorists are not forced to absorb the full impact of the international price surge.

The Prime Minister said the government would use a combination of financial measures to fund the package, including potential tax relief, adjustments to import duties and tax credit arrangements with fuel importers.