The Government of Papua New Guinea is actively tracking developments surrounding tensions involving Iran, Israel and the United States, with close attention to how the situation may affect international fuel markets and the domestic cost of living.
Prime Minister James Marape said, Papua New Guinea remains vigilant as volatility in global oil supply chains has the potential to trigger imported inflation, particularly in fuel and essential goods sourced from overseas.
“We are monitoring global developments carefully and responsibly,” the Prime Minister said. “Should fuel prices exceed sustainable levels, or if imported food costs begin placing pressure on families and businesses, the Government stands ready to step in.”
He noted that a significant portion of the world’s oil supply moves through critical international shipping routes, and any disruption could quickly drive prices upward across global markets.
“Fuel underpins every sector of our economy — from transportation to electricity generation and food distribution,” he said. “If prices rise to extreme levels, we are prepared to introduce targeted subsidies to shield households, businesses and essential services from destabilizing impacts.”
Prime Minister Marape emphasised that Papua New Guinea has previously demonstrated its ability to respond decisively to external economic shocks. During the COVID-19 pandemic, the Government implemented temporary support measures to stabilise supply chains and maintain food distribution between key centres, including Lae and Port Moresby.
He confirmed that similar targeted interventions — particularly on fuel — would be considered if verified inflationary pressures threaten affordability or broader economic stability.
The Prime Minister also reiterated that subsidies on 13 essential household items remain in place to help cushion families from rising living costs.
At the same time, he underscored that long-term resilience depends on strengthening domestic production and reducing reliance on imports.
“In uncertain global conditions, buying local is one of the strongest actions we can take as a country,” he said. “Papua New Guinea has the capacity to feed itself.”
He encouraged greater consumption of locally grown staples such as sweet potato, taro, yam, banana, cassava and sago, highlighting their affordability and nutritional value. He also pointed to emerging local rice production in areas including Rigo as a positive step toward reducing import dependence.
The Prime Minister added that ongoing improvements in road connectivity between agricultural regions and urban markets are enhancing food distribution and reinforcing national food security.
“Our land is fertile and productive,” he said. “Supporting our farmers keeps money within our economy, strengthens rural communities, and protects our nation during global uncertainty.”
Prime Minister Marape assured citizens that should global tensions intensify and economic pressures mount, the Government will implement additional measures to safeguard stability and help the country navigate what may become a challenging international economic environment.
