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05 Mar 2024 | 09:44 AM UTC

Papua New Guinea: Partial resumption of Air Niugini flights reported as of March 5 amid ongoing nationwide fuel supply shortages /update 3

Fuel shortages to continue across Papua New Guinea through at least end March amid partial resumption of flights. Disruptions likely.

Warning

Ongoing fuel shortages in Papua New Guinea are likely to continue through at least end March as the country's sole fuel importer - Puma Energy - continues to restrict supplies. The move was due to delayed payments by the Bank of Papua New Guinea (BPNG) amid foreign exchange shortages and a local bank's withdrawal of services for the company. As of March 5, Air Niugini (PX) has resumed international flight services after securing alternative jet fuel supplies, though domestic flights by PX and PNG Air (CG) remain limited. Supply rationing, as well as widespread and regular closures continue to affect fuel stations, especially in Port Moresby. The government may declare a state of emergency in coming days to restore fuel supplies, though acute shortages and supply suspensions could happen at short notice.

The ongoing fuel rationing measures will likely affect wider business operations, public and private transportation services, and ground services through at least end March. Long lines are certain at petrol stations with fuel, especially if additional fuel rationing measures or shortages occur. Unplanned power outages cannot be ruled out if generators run out of fuel. Demonstrations denouncing fuel shortages are possible. Potential gathering sites include fuel stations, government buildings, police stations, sports fields, and major 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. As of March 1, there have been attempts to tackle longstanding structural causes of the fuel shortage, such as the invocation of certain legal provisions that would allow Cabinet to implement several measures such as the requisition of a refinery. Nevertheless, the situation is unlikely to be resolved in the coming weeks; businesses reliant on stable fuel supply remain vulnerable to disruptions.