Parkop Urges Major Companies in PNG to Bring Corporate Accounts Onshore to Alleviate Fuel Crisis
Papua New Guinea's National Capital District Governor Powes Parkop has called on major companies to relocate their corporate accounts back to Papua New Guinea to address the ongoing foreign exchange (FX) issues contributing to the nation's fuel shortages. Parkop highlighted that while these companies are legally permitted to keep their accounts offshore, the practice is unethical and detrimental to the country's economy.
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| Parkop Urges Major Companies to Bring Corporate Accounts Onshore to Alleviate Fuel Crisis |
Parkop asserted that repatriating these corporate accounts would significantly alleviate the FX and fuel crises and bolster the development of the agriculture sector. "Bringing accounts onshore will also boost the Kina and stop it from its downwards slide. This is important for our economy, which is still mainly import-dependent," Parkop stated. He emphasized that unlike export-driven economies such as China, PNG benefits more from a stronger currency given its reliance on imports.
In addition to repatriating corporate accounts, Parkop suggested that PNG should negotiate with Santos to increase its domestic market quota from Kutubu Oil and to sell to Puma in Kina. This move, he believes, would further help resolve the fuel crisis. "Santos, like its predecessor Oil Search, has limited domestic quota and requires Puma to pay for crude oil from Kutubu in US dollars, compounding our problems with accessing FX and producing enough fuel for the country," Parkop explained.
Parkop criticized the current solution that allows entities with US dollars to import their own fuel, arguing it is not a sustainable business practice. "Ok Tedi, Air Niugini, KCHL, and Lihir Gold have their core businesses which they need to focus on. They are not in the business of importing and exporting oil and producing fuel products. We are not really helping businesses to grow by passing these other activities to them," he said.
Parkop's call for action reflects the urgent need for policy adjustments to stabilize PNG's economy and address the critical fuel shortage impacting the country. The proposal to bring corporate accounts onshore and increase local oil quotas aims to create a more resilient and self-sufficient economic environment.
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