Puma starts fuel rationing again

PUMA Energy starts fuel rationing again following last week’s extension, citing insufficient foreign exchange (FX) to buy fuel from the international market.
Puma chairman and chief executive officer Hulala Tokome said the company was continuing to use emergency stocks while it coordinated efforts with the Bank of PNG to get the required FX.
Tokome said the company currently required US$50 million (K185 million) per month to import fuel.
A statement from the company yesterday said: “Following on from its press release dated Tuesday Oct 10, Puma Energy regrets to inform that, despite the assurances provided, it has not received the required FX to continue normal operations, and is now forced to commence fuel rationing to manage declining fuel stocks to protect fuel security in PNG.
“Puma Energy has drawn on its emergency stock to maintain full supply and provide flexibility to relevant authorities since it was not provided sufficient FX almost three weeks ago.
“We have been working with BPNG and relevant authorities to be as flexible as possible and to accommodate the new timelines for FX, but we unfortunately cannot wait any longer.
“We currently require roughly US$50 million on a monthly basis to import fuels, and our unpaid fuel bills are well in excess of US$ 100 million (about K369 million).
“As a commitment to PNG and to protect fuel security, Puma Energy has withstood significant outstanding FX payments owed to its suppliers over the past few years.
“This growing outstanding amount can only be paid when Puma Energy receives FX from the BPNG or commercial flows.
“As we have said before, we always try to avoid rationing fuel supply until we are left with no other viable options.
“Puma Energy hopes to return to normal fuel supply activities as soon as possible.”