Nationwide fuel shortage worries companies

Fuel shortage hitting cross sectors of the economy can burn out employment when companies turn to save operational cost by laying off workers.

This is the grim reality if the current short term intervention of the executive government announced by Prime Minister James Marape on invoking the Essential Services Act does not address the country's fuel shortages.

Ian Tarutia, PNG Chamber of Commerce and Industry [PNGCCI] President said fuel is an important enabler that keep business operations going and “the fuel shortage is a concern for businesses as it affects transportation and generators that are used for backup power.”

In an email response to NBC Online, Mr Tarutia, said with the current fuel insecurity hitting the economy, companies in the manufacturing industry will be the most affected, “It depends on the specific nature of their activities. But manufacturers for example, who operate production lines like biscuit manufacturing, and rely on generators for power reliability and consistency are likely to scale back production.”

“And this in turn affects employment of workers who could be laid off, [but] PNGCCI is aware government is looking at alternative sources of fuel. Exxon Mobil for instance has indicated it can assist with ensuring there is sufficient fuel for the country's needs.”

City Pharmacy Limited [CPL], a company who runs a chain of supermarkets, hardware stores and pharmacies only have one appeal for the government, and that is to “address all the issue” of fuel shortage.

CPL chief executive officer Navin Raju told NBC Online, fuel shortage, “is a big worry, not only to our business, but all businesses and the economy itself.

“All issues need to be resolved immediately, we have taken contingency plans to ensure we continue to operate but they are short term plans, we cannot operate for more than a week [without constant fuel supply], our contingency plan is to operate in a week, the government must intervene and address all the issues we are facing.”

Inconsistent electricity supply on the main PNG Power main grid, had left many businesses operating in the country, resorting to secondary power sources, and fuel generators, is the common choice.        

CPL group of companies which operates a chain of Stop and Shop Supermarkets, rely on fuel powered generators to help its operations, “power supply in this country is really inconsistent, the power surges cause real damage to our business, in terms of refrigeration,” Mr Raju said.

Meanwhile, last week in Port Moresby Prime Minister James Marape announced that “for short term measures, the head of state [Office of the Governor General] has issued the emergency declaration, and the Minister for Petroleum will direct Puma [Energy] to continue with fuel supply to all areas of fuel needs.”