Puma Energy is the largest entity in downstream petroleum distribution in Papua New Guinea. Photo: Supplied
Fuel shortages continue to frustrate vehicle users in Papua New Guinea, more than a year since they first arose.
The dominant supplier in the market, Puma Energy, said a lack of access to enough foreign exchange is behind the issues they face bringing fuel into the country.
RNZ Pacific's PNG correspondent Scott Waide said in the most recent development the company has announced that it will no longer honour its fuel cards, which allow people to buy fuel on credit.
"So they've issued a statement saying that 'we're not going to honour the fuel cards anymore'. That's taken a whole chunk of customers away from them.
"And people have been left with [with] no real understanding of what the situation is. What's going to happen, what the solution is?"
Puma has also announced that it has limited supplies of fuel.
"Waide said that has put people into "panic mode", adding "people have been rushing to bowsers to refuel".
He said in Port Moresby people have been lining up to try and get fuel, with many stations shutting their doors, while airlines continue to be affected.
The national carrier, Air Niugini, has had to issue statements saying flights have been cancelled, that they are trying to source other suppliers to cover the shortfalls created by Puma Energy.
"So flights have suffered. People have been delayed for days on Air Niugini and other airlines.
"Just three days ago Air Niugini issued a statement saying that flights will resume. But the delays are still happening and I believe that it's to do with both maintenance issues and fuel shortages."
'Huge huge impact'
For over a year, Puma has put the blame for the shortages to limits placed on its ability to import fuel.
It is no secret that the central bank, Bank PNG, has limited foreign exchange across the board as the country struggles under a mountain of debt.
"The official line is that they don't have access to finance or foreign exchange, and that the central bank isn't releasing the amount that they need," Waide said.
"There are also other allegations that are being circulated...related to Puma Energy's parent companies, the banks that are linked to Puma Energy and BSP. So those are at the stage still allegations that need to be proven."
There are other fuel suppliers in the country, but their market share is miniscule.
"For Puma Energy to just withdraw its services at any time, it has a huge huge impact on everyone. Literally everyone, including the basic household."
Eight months ago, the Police commissioner David Manning - wearing his hat as the Pandemic Controller - issued a directive to the Central Bank to sort out the problems with Puma.
But nothing appears to have happened.
Puma Energy Papua New Guinea Photo: Facebook.com / Puma Energy Papua New Guinea
Govt action
Meanwhile, some of the people facing the shortages are taking to social media to say the government's not doing enough and that Puma should come out and explain what's happening.
They say if Puma cannot deal with the situation, then the government should find another fuel source.
According to PNG media reports, Prime Minister James Marape is searching for an alternative fuel supplier in Australia.
Mapare said Australia has indicated to assist with emergency fuel supply, The National newspaper reported.
In January, former Prime Minister and MP Peter O'Neill said in January that the situation "threatens national security".
O'Neill said the solution to the fuel crisis is to turn the Kumul Petroleum Holdings Limited (KPHL) - national oil company - with government support to "take over the import, refinery, storage and bulk distribution from Puma".
On 19 February, PNG government said it was "in serious discussions" with KPHL, ExxonMobil, Total Energies and Santos, "to look into the immediate import of fuel and a long-term solution in the construction of a locally-based refinery for downstream processing to secure the domestic market".
