Papua New Guinea: Ongoing fuel shortages almost certain to persist nationwide through at least late March /update 1

Ongoing fuel shortages are almost certain to persist nationwide through at least late March following the 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. As of Feb. 23, the National Court has ordered Puma Energy to continue supplying aviation fuel to Air Niugini (PX) until Feb. 27. Puma Energy's decision to restrict fuel distribution since Jan. 25 has raised concerns about a potential national shutdown from industry leaders. Puma Energy did not specify a timeframe for lifting the rationing measures. Other fuel providers, including ExxonMobil and TotalEnergies, have attempted to maintain normal operations, albeit with certain limitations in affected areas. In recent days, PNG Air (CG) has announced reduced flight schedules due to limited fuel availability. CG airline officials have indicated that impacted customers can rebook their flights but will not receive refunds.

The ongoing fuel rationing measures are almost certain to continue impacting flight services and could affect wider business operations, public and private transportation services, and ground services. Long lines are possible at petrol stations with fuel, especially if additional fuel rationing measures or shortages occur. 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.