Fuel prices across Papua New Guinea (PNG) will reset back to March levels effective midnight tonight following the government’s full subsidy intervention.
Speaking at an important media conference today in Port Moresby city, the Independent Consumer and Competition Commission (ICCC) Commissioner and Chief Executive Officer (CEO), Mr. Roy Daggy, confirmed that the long-awaited fuel relief will take effect from 12am on April 16, bringing significant price reductions at the pump for consumers and businesses nationwide.
“This is great news for all our stakeholders and consumers. The fuel price will revert from the April 8th rates back to March levels,” he said.
Under the new pricing, petrol will drop from K6.10 to K4.39 per litre, diesel from K7.69 to K4.44, and kerosene from K7.44 to K4.09.
Daggy said the price surge was driven by global supply disruptions caused by the ongoing conflict in the Middle East, which has impacted key crude oil supply routes. As an import-dependent economy sourcing fuel mainly from Asia, Papua New Guinea has been heavily affected.
“We are a price taker. About 65 to 70 percent of the fuel cost is determined by global factors beyond our control,” he explained.
He credited the government’s swift intervention through a comprehensive relief package—covering taxes, GST, excise, and direct subsidies—as the key reason prices are now being fully offset.
A total of K100 million has already been transferred into a trust account at the Bank of Papua New Guinea to begin subsidy disbursements to fuel importers, with systems now in place to ensure funds flow through the entire supply chain.
“The subsidy covers 100 percent across the value chain—from importers to distributors and retailers—so that the benefits are felt at the pump,” Daggy said.
He emphasized that the Independent Consumer and Competition Commission (ICCC) will work alongside key state agencies, including Treasury, Customs, IRC, and the central bank, to strictly monitor compliance and ensure the reduced prices are passed on to consumers.
“We will monitor this right down to the last mile to make sure everyone complies. Non-compliance will not be tolerated,” he warned.
Public Motor Vehicle (PMV) operators have also been urged to immediately adjust fares in line with the reduced fuel costs, with Daggy cautioning against overcharging.
Businesses and traders were similarly reminded to pass on the cost reductions to consumers, noting that fuel is a major input cost that directly affects the price of goods and services.
“We want to see this relief translate into lower prices in shops and across services,” he said.
The fuel subsidy program will run for the next six months, during which authorities will continue monitoring global oil prices and the local economic impact.
Daggy acknowledged the patience of citizens and stakeholders during the past week of uncertainty and thanked the government and taskforce for their coordinated response.
“We appreciate everyone who has stood with us during this time. Now is the moment where people will begin to feel the real benefit of this relief,” he said.
