ICCC warns PMV and taxi operators against unapproved fare hikes

Public Motor Vehicle [PMV] and taxi operators in Port Moresby are planning to increase fares from Friday, but the Independent Consumer and Competition Commission [ICCC] says operators cannot increase fares without its approval.

The planned fare increases come after fuel prices rose by K1 per litre, with operators citing higher fuel costs as the reason for the increase.

The ICCC says any increase in PMV and taxi fares resulting from higher fuel costs must first be assessed and approved by the Commission.

It says the current approved fares remain in place and operators should not impose higher fares without approval.

The ICCC has acknowledged the financial pressure faced by PMV and taxi operators in providing essential public transport services.

It says it is considering a practical way forward to address the impact of the recent fuel price increase on public transport.

The Commission is also due to make its annual adjustment to the maximum PMV and taxi fares for 2027 in about two months.

The ICCC says it will formally advise PMV and taxi operators as soon as a decision is made on how to address the current increase in fuel costs.

The latest fuel price increase is linked to volatility in the global fuel market, particularly the ongoing conflict in the Middle East.

The ICCC says the Government is continuing to subsidise fuel prices to protect consumers from the full impact of higher international prices.

For example, diesel in Port Moresby is currently K5.90 per litre, compared with an estimated unsubsidised price of K7.31.

This represents a subsidy of K1.41 per litre, made up of a 66-toea GST exemption and a 75-toea direct subsidy paid to fuel importers.

The ICCC says higher fuel prices will put pressure on the cost of goods and services, particularly food, utilities, energy and transport.

However, it says the fuel price increase does not automatically authorise PMV and taxi operators to raise fares.

The Commission says it understands the challenges facing public transport operators and will fast-track a practical solution while continuing to protect consumers from unreasonable and excessive prices.