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27 Feb 2024 | 05:19 AM UTC

Papua New Guinea: Flight disruptions, shutdown of several fuel stations reported as of Feb. 27 amid ongoing fuel supply shortages nationwide /update 2

Flight disruptions, shutdown of fuel stations in Papua New Guinea as of Feb. 27 due to ongoing fuel shortages. Localized disruptions likely.

Warning

Flight disruptions and shutdown of several fuel stations within Port Moresby have been reported as of Feb. 27 amid ongoing fuel shortages nationwide. The incident is caused by a recent restriction of fuel distribution by Puma Energy due to a foreign exchange issue and a local bank's withdrawal of services for the company. While Air Niugini (PX) has secured alternative jet fuel scheduled to arrive by March 3, current fuel shortages have caused delays and cancellations of flights, which will likely persist until the replacement cargo arrives. PNG Air (CG) indicated that impacted customers can rebook their flights but will not receive refunds.

The ongoing fuel rationing measures will likely affect wider business operations, public and private transportation services, and ground services through at least mid-March; lingering disruptions cannot be ruled out even after alternative supply has been secured. Long lines are possible at petrol stations with fuel, especially if additional fuel rationing measures or shortages occur. Unplanned power outages cannot be ruled out, as generators run out of fuel. Related demonstrations could occur amid the fuel shortages. Potential gathering sites include fuel stations, government buildings, police stations, sports fields, and thoroughfares. Authorities will highly likely monitor any such gatherings that materialize and could use force to disperse especially unruly crowds. Clashes between police and activists are possible.

Confirm flight reservations in advance. Plan for fuel shortages and long wait times at gas stations. Stock up on fuel when possible. Limit vehicle use to preserve fuel. Confirm business appointments, transport reservations, and deliveries over the coming weeks. Charge all communication and portable electronic devices when possible. Avoid any potential protests due to possible violence. If clashes break out, leave the area immediately. Heed all official advisories.

Papua New Guinea faces persistent nationwide fuel shortages due to a prolonged legal dispute over forex access between Puma Energy and the central bank. Previous crises in 2022 and July 2023 highlight recurring challenges in meeting fuel demands. The declaration of a national emergency in 2023 underscores the severity of the situation, with rationing measures in effect once again. Efforts to secure long-term solutions, including negotiations with global petroleum companies, are underway, but businesses reliant on stable fuel supply remain vulnerable to disruptions.