Puma Energy PNG face foreign currency issues

PNG PUMA ENERGY
PHOTO: Puma Energy PNG

Puma Energy PNG cannot possibly sustain its business if the foreign exchange (FX) issues remain unresolved, its country manager Hulala Tokome warned.

“With the cost of crude, we cannot continue to sustain our business by not having the required FX to buy crude oil for refining,” he added.

“We are engaging with the Bank of Papua New Guinea and commercial banks to address the issue. With FX issues, we continue to have challenges in clearing our FX requirements,” Puma’s Tokome told The National.

Bank of Papua New Guinea (BPNG) acting governor Benny Poipoitai had stated that the Central Bank made available K206 million (US$60 million) in FX currency to commercial banks each month.

He assured companies in the country that neither the Central Bank nor the Government would discriminate against businesses when it came to addressing FX issues.

Popoitai said companies should make use of the K206 million (US$60 million) in FX.

In relation to the PNG Government’s removal of excise and goods and services tax (GST) for fuel, Tokome said: “This was implemented on May 8 for all retailers, a welcoming relief for consumers. But we have yet to receive a Gazettal notice on GST and excise detailing individual businesses that should not be exempt as per the bill for us to enforce.”

“Hence for non-retail businesses, all are exempt from excise, however GST is charged.”

Removal of excise is for all companies across the board while GST is for certain companies which Puma is still awaiting a list from the Treasury.

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