Alternate fuel supplier sought

PRIME Minister James Marape says an alternative fuel supplier is being sought out to address the continuous fuel shortage in the country.
“The issue has resurfaced and in the long-term, we are looking into alternate fuel arrangements.
“Hopefully, this time next year or within the next six months, we should have an alternate fuel supplier that is readily available to supply fuel to the country.
“We had a temporary relief arrangement and Bank of Papua New Guinea (BPNG) was able to uplift the release of foreign exchange (FX) to the market from what was a US$30 million (about K110 million) amount released, to now a US$100 million (about K366 million) amount released.
“Puma (Energy) is at the front of the queue in respect to receiving a substantial part of those distributions monthly for the procurement of fuel into our country,” he said.
Marape said this in response to questions raised by West New Britain Governor Sasindran Muthuvel in Parliament on Friday, about the Government’s plan to address the ongoing fuel supply issue in the country.
Muthuvel asked the question after Puma Energy recently issued a notice to ration fuel due to a lack of sufficient FX.
“In light of the notice issued by Puma due to their claim of FX issues, what are the steps being taken since the last time the committee was formed to negotiate with Puma and BPNG to resolve this issue?“This shortage of fuel will affect our airlines, our power and other energy sectors.
“It is a national security issue and what are steps the Government is going to take to address this?” Muthuvel said.
Marape responded saying that the Government had short-term and long-term plans in place to address the issue.
“Puma must understand that we have other essential services to supply FX to, including those who import into the country
“BPNG has also has worked with Puma asking them also to use proceeds of their sales outside to pick up in terms of supply of FX to buy and procure fuel for the country.
“In the long-term, we are looking into alternate fuel arrangements and have indicated that ExxonMobil and MRDC (Mineral Resources Development Company) are working with us for an alternate option.
“We do not want to be reliant on one supplier forever.
“We are looking at alternate fuel suppliers.
“I want to put to Puma; I know you operate a business but you must be fair and rational as you operate in our country.
“We are doing everything possible within the capacity of FX we have to supply to them to allow them to continue to supply fuel to our country,” he said.