Former PM, O'Neill Addresses Urgent Fuel Crisis, Advocates for Swift Government Intervention
In a pressing statement today, Former Prime Minister and Member for Ialibu-Pangia, Peter O'Neill brought attention to the escalating fuel crisis that has gripped Papua New Guinea, emphasizing the critical implications for national security, business operations, and investor confidence.
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| Former PM O'Neil raises concern over on-going fuel crisis in the country |
The crisis, persisting for over 18 months, has disrupted fuel supply chains, leading to intermittent shortages and, at times, a complete lack of fuel availability. The resultant turmoil has inflicted substantial damage on the nation's reputation and economy, prompting O'Neill to underscore the urgent need for effective resolution.
O'Neill highlighted the pivotal moment in August 2023 when the Marape Government declared a 30-day national emergency due to fuel shortages, leading to a halt in motorist activities and airline operations across the country.
The complexity of the crisis has evolved beyond a mere shortage of foreign currency for fuel purchases. O'Neill revealed that Puma, a significant fuel supplier, is currently grappling with banking challenges. The largest bank in Papua New Guinea, BSP, has served Puma a nine-month notice to close their accounts, citing non-compliance with the Bank of Papua New Guinea (BPNG) and international banking requirements.
O'Neill raised concerns about Puma's tactics, describing them as a form of bullying and holding the country at ransom. He pointed out the need for a swift government response before the looming March 8th deadline, expressing skepticism about Puma's intentions.
Drawing attention to the proposal for Kumul Petroleum Holdings Limited (KPHL) to take over import, refinery, storage, and bulk distribution from Puma, O'Neill stressed the importance of ensuring an uninterrupted fuel supply during the transition period. He also advocated for the sale of local distribution and retail fuel stations to majority-owned PNG companies, breaking Puma's stranglehold on the nation's fuel infrastructure.
O'Neill drew attention to the potential consequences of non-compliance with banking laws, warning that it could lead to Papua New Guinea being placed on the international "grey list," severely impacting its international reputation and economic future.
Addressing rumors of a group, including some MPs, potentially orchestrating the sale of Puma's assets to companies under their control, O'Neill urged against such actions. Instead, he emphasized the crucial role of KPHL, a state-owned company representing national interests, in resolving the fuel crisis.
As the nation grapples with the urgency of the situation, O'Neill called upon Prime Minister Marape to take decisive action, prioritizing the nation's interests over potential self-serving motives. The fuel crisis, O'Neill asserted, demands immediate government intervention to safeguard national security and ensure a sustainable, long-term solution.
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