Fuel supply reliant on FX

By PETER ESILA
THE shortage of fuel in PNG could become serious if Puma Energy is unable to have foreign exchange (FX) to pay its suppliers, says an executive.
Puma Energy PNG Group of Companies chairman and managing director Hulala Tokome said “the situation is eminent, but also entirely avoidable”.
“Even if we were given more FX today to purchase a new cargo, the earliest it will arrive is in mid-August, so our operations team is under enormous pressure to manage that process and that is why we are urgently calling for help to avoid the need to ration,” he said.
It makes it very difficult for us to run the business and ensure security of supply for PNG.
“We are more than willing and ready to work with the authorities to resolve any outstanding issues.
“We are grateful to the senior authorities for their keenness to resolve these issues to avoid disruptions.
“When we don’t have the FX to buy the new fuel, we then need to extend the availability of whatever we have left until we have the FX to buy more. And when we are not getting enough FX and only getting small amounts, then we can’t plan and purchase enough fuel for the long term.
“We need plenty of inventory to ensure security of supply.”
Tokome said fuel rationing was the last resort which we hope to avoid. We always try our best to avoid it until we are left with no other option— it is aimed at extending the use of the fuel we have left,” he said.
We have to make sure this fuel is available for emergency services, hospitals and critical infrastructure, such as power generation.
“We take our obligations very seriously – rationing and the need for it are not our choice but simply the best way of managing the difficulties created when we cannot obtain the FX.”