K1 billion fuel subsidy to take effect April 15

The Government’s K1 billion fuel subsidy aimed at easing the recent spike in fuel prices is expected to take effect by Wednesday, April 15.

Prime Minister James Marape announced the relief package, saying the Government has set aside one billion kina to support fuel importers and prevent the full cost from being passed on to consumers.

“Our consumers, whether as a consumer, as a company, industry or people at the fuel buses, whether it's kerosene, petrol, diesel or jet fuel for our planes and ships, we do not pass on the burden to the consumers,” Mr Marape said.

He said instructions have also been given to the Independent Consumer and Competition Commission [ICCC] to maintain fuel prices at the March rate.

“I know ICCC based on the readjustments taking place globally has issued an instruction out that the price is now increased based against the global price increase.

“However, cabinet intervention now will see ICCC having a relook at the rate and we want the rate to go back to March 2026 rate, whether it's kerosene, jet fuel, petrol or diesel,” Mr Marape said.

The Prime Minister added that the Government is also considering Goods and Services Tax relief, stamp duty and levy relief, and import duty concessions to help reduce the cost of fuel.

He said the Government will also work with fuel importers through tax credit arrangements to further ease the cost of petroleum products.

Mr Marape said the measures are part of the Government’s response to address the fuel price situation and ease the burden on households and businesses.

Meanwhile, Cabinet has appointed Minister for Rural and Economic Development Joseph Lelang to chair a special committee to oversee the fuel crisis.