PNG CORE warns fuel prices to follow market rates

The Papua New Guinea Chamber of Resources and Energy [PNG CORE] says fuel suppliers will now move to market-based fuel prices following challenges with the government fuel subsidy program.

PNG CORE, which represents fuel importers and suppliers in the country, said the Government had helped keep fuel prices lower despite rising global fuel costs caused by international conflicts and supply problems.

Fuel prices in Papua New Guinea are controlled by the Independent Consumer and Competition Commission [ICCC] and are based on international fuel prices.

In April this year, the ICCC announced major fuel price increases. However, the Government introduced a fuel subsidy program to keep fuel prices at March levels.

PNG CORE said while the industry appreciated the subsidy support, there have been delays in reimbursement payments to fuel suppliers.

The organisation said fuel companies had been paying the subsidy costs upfront while waiting for government repayments.

PNG CORE said because of the delays and uncertainty, fuel suppliers now have no choice but to move to normal market pricing based on the May Import Parity Price and fuel product costs from today, May 15, 2026.

The organisation warned that this could affect fuel supply at some retail outlets and service stations.

PNG CORE stressed that the country is not facing a fuel shortage.

However, it said continuing to sell fuel below cost for a long period without proper reimbursement places pressure on fuel suppliers and creates risks for fuel security in the country.

The organisation said fuel imports require large upfront payments and foreign exchange arrangements months before fuel arrives in the country.

PNG CORE said the industry remains committed to working with the Government to find a long-term solution that gives certainty to consumers, the Government, and fuel suppliers.

The organisation also reaffirmed its commitment to continue supporting the people and Government of Papua New Guinea.