Fuel price rise adds pressure on Lae businesses and PMV operators

Rising fuel prices are putting additional pressure on businesses and public motor vehicle (PMV) operators in Lae, with higher operating costs also affecting transport fares and the prices of goods and services.

Businesses that depend on diesel generators to keep their operations running are among those feeling the impact, particularly as unreliable electricity supply forces some to rely on generators for extended periods.

Lae Chamber of Commerce and Industry President John Byrne says the combination of rising fuel costs and power supply problems is making it more expensive for businesses to operate.

Byrne says some businesses run diesel generators around the clock, while others maintain backup generators to avoid disruptions when electricity supply is unreliable.

A PMV driver in Lae says the increase is also affecting daily transport operations.

The driver says K50 previously bought about 10 litres of fuel, but the same amount now buys only six litres, making it harder to keep the vehicle operating and earn an income.

The driver says the reduced amount of fuel is affecting daily work, as more money is needed to keep the vehicle on the road.
Byrne says PMV operators often respond to rising fuel prices by increasing fares, adding to the cost of travelling for passengers.

He says higher transport and operating costs eventually affect businesses and consumers, as businesses adjust their prices to meet increased expenses.

Byrne also says the fuel price increases are driven by external factors and are not something the Government directly controls.
However, he believes businesses will have to adjust to the higher costs, saying he would be surprised if companies were already considering closing their operations because of the increases.

The rising fuel costs come at a time when businesses in Lae are also dealing with unreliable power supply, increasing pressure on their operating budgets.