Prime Minister James Marape has defended the Government’s decision to end direct fuel subsidies after spending more than K1 billion since April 2026.
PM Marape in a statement yesterday said his government will continue easing cost-of-living pressures through tax exemptions and other assistance measures.
Prime Minister Marape said the Government had cushioned citizens from rising international fuel prices for seven months and, despite the direct subsidy ending on 8 November, would maintain the Goods and Services Tax (GST) exemption on fuel until 31 December 2026.
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“Look at what people are paying for petrol in other countries. Based on recent prices converted into kina, petrol costs approximately K12.47 per litre in Singapore, K9.02 in New Zealand, K7.35 in Fiji and K7.29 in Australia, compared with K6.19 in Port Moresby,” he said.
“These comparisons show that rising fuel prices are an international problem. Your Government has spent more than K1 billion protecting you from the full impact since April.
“We have not abandoned our people, and we are continuing to explore ways to provide further assistance.”
Prime Minister Marape said fuel subsidies were only one part of the Government’s broader efforts to support ordinary Papua New Guineans.
“Your Government is helping pay your children’s school fees, providing income tax relief for low-income earners, removing GST from specified essential household items, supporting increases in the minimum wage and providing stamp duty relief for eligible first-home buyers,” he said.
“We are also working to keep electricity affordable, supporting the acquisition of new Air Niugini aircraft and assisting communities affected by drought.
“These measures cost money, and we must balance them against our responsibility to fund hospitals, schools, roads, agriculture and other essential services.
“No government can subsidize fuel indefinitely without affecting other important national priorities.”
Prime Minister Marape urged citizens not to allow political interests to exploit genuine concerns about the cost of living.
“Do not allow people seeking political power to use your frustrations for their own purposes. Those criticizing the Government should explain how they would finance continued fuel subsidies without taking money away from essential services,” he said.
“I understand the difficulties families are facing, and I respect their right to raise concerns. But I also ask our people to recognize the assistance their Government is providing.
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“This is a pro-people Government committed to ordinary workers, parents, farmers, students, small businesses and rural communities.
“We have not abandoned you. We will continue working within our means to provide relief, strengthen our economy and improve the lives of all Papua New Guineans.”