The Independent Consumer and Competition Commission has confirmed the Government’s Fuel Relief Assistance will continue until 31st December 2026.The program will keep domestic fuel prices at March 2026 levels.
The subsidy will be reflected in the August 2026 Indicative Retail Fuel Prices, which take effect at 12:00AM on Saturday, 08th August 2026.
This marks the 5th month of the program under NEC Decision No. 125/2026.Since July 2026, the subsidy has been targeted to four groups: retail customers at service stations, drum sales, PNG Power Limited, and the Aviation Sector.
The NEC has also removed premiums from the fuel pricing methodology. The ICCC said this follows easing Middle East tensions and a drop in oil prices. No premiums will be applied in monthly fuel price calculations for July, August and the months ahead. However, international oil prices spiked again in early July 2026.
The ICCC cited US-Iran tensions, incidents in the Strait of Hormuz, and the closure of the Bab el-Mandeb Strait by Houthi militants. These factors, along with currency-driven inflation and Q3 freight rate adjustments, have put pressure on domestic fuel costs. Under the Fuel Relief Assistance, importers will buy fuel at current international prices without premiums.
They will sell to service stations and contracted customers at March 2026 prices, with the Government covering the difference through the subsidy.
In Port Moresby, the subsidy provides major savings per litre:
| Product | Without Subsidy | With Subsidy | Government Subsidy |
| Petrol | K5.53 | K4.39 | K1.14 |
| Diesel | K6.25 | K4.44 | K1.81 |
| Kerosene | K5.83 | K4.09 | K1.74 |
Without the subsidy, consumers would pay K1.14 more for petrol, K1.81 more for diesel, and K1.74 more for kerosene. The ICCC confirmed prices in all other centres will also remain at March 2026 levels. The ICCC urges fuel importers, distributors, wholesalers, and retailers to comply with the price reset.
The ICCC, together with Customs, IRC, BPNG, and Treasury will conduct ongoing compliance and monitoring to ensure the Fuel Relief Assistance reaches final consumers.
The Fuel Relief Assistance is the Government’s measure to protect PNG’s economy and people from external shocks, and to ensure price stability and supply security during the global fuel crisis.
For the full August 2026 Indicative Retail Fuel Prices, visit www.iccc.gov.pg
