ICCC approves fare hikes to save struggling PMV sector

A route 16 bus traveling the Gordon-Erima road in Port Moresby *(Image: NBC News / Suli Suli)*

The Independent Consumer and Competition Commission [ICCC] has moved to prevent a potential crisis in the national transport sector, approving a series of fare increases aimed at keeping Public Motor Vehicles [PMVs] and taxis on the road.

The decision, announced by ICCC Commissioner and chief executive officer Roy Daggy in Mt Hagen this week, comes as a direct response to the skyrocketing costs of vehicle maintenance, spare parts, and fuel that have threatened to drive operators out of business.

According to Daggy, the 20 per cent increase for 2026 is not merely a price adjustment, but a strategic lifeline for the industry. A review of the sector revealed that many operators are currently operating on razor-thin margins.

"The ICCC has approved these new fares after reviewing the rising cost of doing business," Daggy said. "There has been a significant increase in the cost of vehicle parts and other expenses, and this has affected the ability of operators to continue providing services."

The ICCC’s long-term plan includes a phased approach to ensure the industry's sustainability with an initial 20% increase to address immediate inflation this year. There will be continued 20% annual adjustments to match projected operational costs in 2027 and 2028.

ICCC Executive Manager for Consumer Protection Jacqueline Wafi, and ICCC Commissioner Roy Daggy addressing the media in Mt Hagen on the increase of PMV and Taxi fares in the country *(Image: NBC News / Vanessa Ripa)*

While the ICCC is supporting operators with higher fares, the support comes with a demand for professionalism. To protect the integrity of the industry, the Commission has warned rogue operators who charge above the gazetted ratesm to comply with directives.

Executive Manager for Consumer Protection, Jacqueline Wafi, said the penalty for overcharging has been hiked from a negligible K600 to a massive K10,000. This ensures that while honest operators get the revenue they need to maintain their fleets, the public is protected from exploitation.

Daggy said by allowing these controlled increases, the ICCC aims to ensure that transport remains available nationwide. Without these adjustments, the risk of transport deserts, where operators simply cannot afford to run certain routes would increase significantly.

He said ICCC will continue to monitor the sector closely, ensuring that this new pricing translates into more reliable and safer vehicles for the traveling public.