Fuel shortage is a major concern says PNG-Europe Business Council President Michael Sullivan

Finding alternative fuel sources to meet the demand shortfall created by major fuel importer Puma Energy is the path now undertaken by many businesses operating in the country.

PNG – Europe Business Council President Michael Sullivan in an interview with NBC News spoke on the importance of fuel to the economy and how fuel insecurity had become a major concern with limited supply to meet, market demand.

“Fuel crisis is a considerable concern [because] fuel is an integral part of the PNG economy. All sectors of PNG economy depend on fuel in one form or another.

“Any disruption, will have major impact on businesses, resulting in loss of sales, dissatisfying customers and increase cost, it is a major concern.”

The aviation industry had been the hardest hit with flight cancellations and flight delays, turning into a daily frustration for the travelling public.

Per previous agreement signed with the government, Puma Energy is the sole supplier of aviation fuel.

Air Niugini and PNG Air after running to the courts, are now directly sourcing Jet A-1 aviation fuel to keep its planes, in the skies and the PNG-Europe Council president said companies are “replacing the fuel supply issue, which is a major concern.”

Mr Sullivan said companies operating in the cross-sector of the economy were all affected, but there is no major statistics to confirm, companies are laying off workers.

“Companies can’t carry on business if there is no fuel. You expect some redundancy. How many so far is difficult to tell. There could be some preferential job loss, but our market intelligence tells us so far, no major job losses associated with fuel crisis. 

Time will tell if the executive government's recent decision to invoke the Essential Services Act will change the course of fuel shortage in the country.