The Government is considering a subsidy to cushion the effect fuel price increased it has granted to InterOil.
Transport, Civil Aviation and Works Minister Don Polye said a subsidy was being considered, but there were also other possibilities the Government was weighing.
The huge price increase the Government granted to InterOil had triggered increases in transport, freight and costs of goods and services as companies and service providers pass the increased costs to consumers.
Mr Polye said the Government was aware of this situation, and it was being discussed between himself, the Prime Minister and other relevant ministers.
“We are also talking to InterOil about this. Its unfortunate and we have to address this as it was affecting our people.
“Subsidy is a possibility, but there are also other possibilities,” he said without elaborating.
A subsidy would see the Government effectively paying for the fuel price hike it had granted to InterOil, knocking the fuel price back to previous level, and preventing any flow on price increases for goods and services.