Fuel cost worries O’Neill

Former Prime Minister Peter O’Neill says the rising cost of fuel is leading many to go hungry and the Government needs to stop doing nothing.
According to the Independent Consumer and Competition Commission, fuel prices have increased this month with petrol at K5 per litre, diesel at K4.84 per litre and kerosene at K4.45 per litre.
O’Neill said: “People in island communities rely on outboard motor fuel, zoom, to travel further to fish to feed their families and earn a living.
“On Karkar Island where fishing is the main source of protein, zoom is now prohibitively expensive at over K6 per litre.
“The high price means only fishing grounds close to shore are fished and the normal outer reef fishing has slowed significantly or stopped.
“This is leading to genuine food shortages and reports of starvation are rife.
“The burden on our mothers and forests is also increasing across nationwide with firewood increasingly being used as fuel for cooking due to the very high cost of kerosene.
“What are our mothers to do, except collect firewood if the price of kerosene is out of their reach?
“We are a nation that protects our environment, but you cannot blame our people to turn to what is around them when the cost of cooking fuel jumps so much. And this is an issue not just for rural areas but in settlements around our country people are also turning to any means, including petty crime, to make ends meet to pay for fuel.
“Our agriculture and transport sectors need relief on the cost of diesel.
Failing to do so is increasing the cost of everyday items such as rice, sugar, flour, bus fares and other essentials.
“One example of the impact is an agriculture company in the Markham Valley which employs more than 4,000 workers and an additional 1,000 seasonal workers.
“The company is facing rising fuel bills, thereby increasing operational costs by multi-millions of Kina. Of course, without help from the Government, businesses like this will potentially lay off workers and increase the price of their products.”
O’Neill urged the Government to understand people’s daily needs and put in place a subsidy for kerosene, zoom and the agriculture and transport sectors.
“I am confident our fuel companies will pass on savings to the customer,” he said.
“Longer term, we need to hasten our transition to fuel and energy self-reliance, create a fuel reserve system and increase renewables into the mix of which our country has an abundance.”