PNG minister says petrol supply to remain stable

4:04 pm on 31 August 2015

Papua New Guinea's minister for petroleum and energy says the government doesn't anticipate major disruption to the supply of petrol.

Nixon Duban's comment comes as PNG's major petrol supplier, Puma Energy, warned that the country is set to run out of petrol in the coming weeks as the company winds down its supply.

Local media is reporting that the company made a decision to stop supplying petrol over the weekend, amid negotiations with the government over 1.4 billion US dollars in taxes it has been asked to pay for crude oil it imports into PNG.

Mr Duban is determined that the country's petrol supply remains in good stead.

"I will talk to Puma, and I will also try and talk to the minister for treasury and the customs commissioner general to try to allow some exemptions if there is a need. And I think it is about time that we put this issue to rest and allow the flow of petrol for thr country to remain stable."

Puma Energy bought InterOil's oil refinery and petroleum products distribution business in PNG last year for $US526 million.

InterOil Refinery, Napa Napa, Papua New Guinea.

Puma Energy operates the Napa Napa oil refinery near Port Moresby Photo: RNZI / Johnny Blades