Government remove fuel subsidy

Fuel pump at a service station in Port Moresby. ICCC says the fuel subsidy is now used up and will be removed *(Supplied)*

The government’s 1billion kina fuel subsidy package is now fully exhausted and will be completely removed by 8th of this month, this Sunday.

This was announced by the Independent Consumer and Competition Commission (ICCC) in a public notice in Port Moresby today.

This will see price increase of petrol, diesel and kerosin.

Consumers, service providers and businesses will dig deeper into their pockets, as fuel costs increases for the month of November.

This follows the announcement by ICCC, that the National Government will remove the fuel relief subsidy and will come into effect this Sunday 8th, November.

The 1billion kina fuel assistance came into effect in April 2026, which the government supported fuel prices through two measures: a direct fuel subsidy to help keep retail pump prices lower; and an exemption from Goods and Services Tax or GST.

In a public Notice, ICCC says the fuel subsidy is now used up and will be removed, in accordance with National Executive Council (NEC) Decision No. 225/2026. However, Government's exemption from Goods and Services Tax will remain until December 31, 2026.

ICCC explains the change to the subsidy arrangement is a fiscal policy decision made by the Department of Treasury as part of the Government’s management and reprioritisation of public expenditure. ICCC does not determine government tax or subsidy policies.

The consumer watchdog says international fuel prices have increased, while the removal of the subsidy and the weakening Kina against the US dollar will add further pressure on pump prices that sees increase fuel prices for this month.

ICCC adds this is the ripple effect of the ongoing middle east war and also government has reprioritized its spending due to conflicting priorities, especially the El Niño assistance.

Meantime, ICCC will review regulated PMV and taxi fares in December 2026 to determine whether any adjustments are needed.

However, the expected rise in fuel prices from November 8 will not automatically increase transport fares, as any changes must go through a separate regulatory process.