21/05/2026
SEVEN YEARS OF DARKNESS: NO NATIONAL FUEL AND ENERGY POLICY TO END PNG'S DEPENDENCE AND FRAGILITY
Thursday, 21 May 2026
The Prime Minister has championed a seven-year energy policy vacuum. Since 2019, we have no refinery, no rural communities connected to the grid, no fuel price reforms, and no strategic fuel reserves. The current fuel crisis is not an accident. It is the inevitable harvest of leadership failure, institutional inertia, and a government without vision.
Today, PNG remains 100% dependent on imported refined petroleum. Every litre of fuel is processed offshore, shipped at foreign margins, and taxed on arrival. The result: pump prices consuming 18–24% of rural household expenditure. The World Bank describes this as a poverty tax paid daily by the people. The continuous blackouts and import dependence connote incompetence, rigidity, and intemperance in leadership.
The proposed policy alternative is for the immediate blanket removal of import duty (8%), excise (~K0.22/litre), and GST (10%) on all fuel imports to bring concurrent price reduction and relief.
For the long term: a PNG National Refinery, developed through a public-private partnership utilising our LNG feedstock, delivering energy sovereignty, over 2,000 direct jobs, and an additional K0.30–K0.50 per litre fuel price reduction. In addition, accelerated hydro and solar investment targeting a 60% renewable electricity mix by 2035, a solar micro-grid programme for rural communities, and universal grid access will provide reliable power to students for study, nurses for vaccines, and farmers for crop processing.
The UNDP is unambiguous: energy access is the highest-leverage intervention for improving the Human Development Index. Every percentage-point increase in electrification correlates with measurable gains in health outcomes, school enrolment, and household income. The Opposition’s policy reaffirms the 2018 APEC promise in Port Moresby and aims to reduce the household energy cost burden from 20% to 12% of expenditure, advance PNG's HDI ranking by 8–12 positions and generate 5,000–8,000 jobs in energy infrastructure by 2030.
Underpinning all of this: a reformed ICCC with a mandatory, publicly published fortnightly fuel price formula; an independent Fuel Price Audit Unit with powers to compel importer cost disclosure; and penalties of up to K5 million for price gouging. Transparency, accountability, and consequence underscore the success of the alternative policy, and are notably absent in Marape’s energy governance.
Seven years. No refinery. No rural grid. No strategic reserves. No price formula reform. No APEC bilateral agreement follow-up. The Marape Government has squandered time and resources. Papua New Guinea deserves a government that builds, that puts people first, that delivers. At every crises we remember that this government failed miserably. No blame game!
Remove the taxes. Build the refinery. Power the nation. Raise every Papua New Guinean.
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