Puma Energy puts temporary lid on fuel supply
The decision by a major supplier of petroleum products in the country to impose a temporary restriction lid on its supply as of midnight, Thursday 25th January 2024, with impacts of this to be felt across the economy.
The country will be at the mercy of Puma Energy again, as the company implements a temporary supply restriction to preserve the remaining stock it has.
Managing Director Hulala Tokome in a confidential letter says the decision was reached following banking difficulties with Bank South Pacific.
He says B-S-P remains unwilling to maintain the company banking services or to constructively discuss solutions.
But in a media statement, BSP Financial Group CEO Mark Robinson said, the bank had given adequate time to Puma Energy to transfer its core banking to another commercial bank, before it closes Puma Energy’s account on 8th March 2024.
“The reasons for BSP’s decision are known to Bank of PNG and had been communicated to the government,” Mr Robinson said.
The decision will certainly impact the supply of fuel throughout the country as the company is a major distributor.
Air travel will be the most vulnerable from Puma Energy’s decisions because the company is the sole aviation fuel supplier in PNG.
Meanwhile, Prime Minister James Marape in the last few days has had discussion with B-S-P and the Central Bank to address concerns raised by Puma Energy.
“I have asked Central Bank to complete the long investigation that had gone on for the last two years to make a conclusion, and if there is no glaring concern, we asking for another transition period for Puma to operate, as we bring to finality what concern Central Bank has with Puma,” Mr Marape said.
The prime minister hinted on using certain provisions under the law to safe guard the energy security of the country.
Puma Energy temporary fuel restriction continues.