Islands Petroleum steps in to assist fuel shortage

The new tank currently operational to serve customers in Lae and the Highlands region (Supplied: Islands Petroleum)

Islands Petroleum Limited has stepped in to address the fuel crisis in PNG by commissioning a new 5-million litre tank in Lae.

This move aims to increase storage capacity and better manage fuel supply across the country following the recent nationwide shortage of fuel supply.

Islands Petroleum in its best effort is working to meet the increased demand for fuel in PNG by collaborating with suppliers such as ExxonMobil to address the current situation.

Retailers, like the one under Chemcare Group Limited, have also partnered with Islands Petroleum to provide fuel under the IPL banner. This initiative is set to benefit customers in various locations, making fuel more accessible and reliable.

The issue on fuel crisis has impacted many prominent business organizations in PNG especially the aviation industry where fuel supply is set up on a monopoly arrangement by supplier PUMA Energy.

This has forced airlines operations to be scaled down over the last few weeks, causing commercial strain and customer frustration.

“Rationing of jet fuel over the past few weeks has caused financial stress for most aviation operators, as well as people and industry depending on an air service,” PNG Air said in a statement released last week.

“Navigating this period has been complicated by a lack of transparency about PNG’s jet fuel reserves and depletion times. It forced PNG Air not to trust its future in the hands of the current Jet Fuel monopoly that exists in PNG.”

Whilst the government is working to resolve this prolonged issue with Puma, business houses are now eyeing alternative avenues to source fuel to keep their businesses operational.

PNG – Europe Business Council President Michael Sullivan speaking to NBC News highlighted fuel as an integral composition of the economy and any disruption in its supply would impact all sectors of business in the country.

Sullivan says this is a worry for big business organizations and should be considered an important matter which needs government’s attention.