PUBLIC NOTICE: ICCC’s DETERMINATIONS AND PRICES ORDER FOR PMV AND TAXI SERVICES FOR 2026

In early January 2026, the Independent Consumer and Competition Commission (‘ICCC’) announced the conclusion of the 2025 PMV and Taxi Fare Review, and released its Final Report, which set out the ICCC’s final determinations and the regulatory arrangement to apply for the 2026 – 2030 regulatory period, including the approved maximum fares for 2026.

Following this announcement, the ICCC has observed misleading and incorrect information circulating in both the print and social media platforms regarding the fare adjustments. This Public Notice is issued to clarify the ICCC’s decisions and to address some of the misconceptions raised by both commuters and PMV and Taxi operators.

Why were the PMV and Taxi fares reviewed?

The costs of living, including the costs of operating PMVs, have increased significantly since 2019.  Based on its review, the ICCC established that:

• The costs of operating PMV services have increased by approximately 60%, and
• The costs of operating taxi services have increased by 40%.

while the regulated fares remained below costs during the same period.

The purpose of reviewing the fares is to ensure that the fares reasonably reflect changes in operating costs and the broader economy, while also considering affordability for commuters. 

Phased Implementation of fare increases

However, considering affordability challenges faced by the public, the ICCC determined to apply the approved fares in phases over the first three (3) years of the five-year regulatory period.

• Regulatory period: 01 January 2026 to 31^st December 2030.
• Phasing period: The first 3 years are from 2026 to 2028.

ICCC’s Key Determinations

The ICCC has made the following key determinations, balancing regulatory rigour and operational realities unique to Papua New Guinea;

• PMV fares will increase by 20% per year in 2026, 2027, and 2028;
• Taxi fares will increase by:
• 16% in 2026,
• 14% in 2027, and
• 10% in 2028;

In addition to the above increases for PMV and Taxi fares, there will be annual adjustments specifically reflecting the movements:

• in the monthly prices for fuel (diesel and petrol) and
• the Underlying Consumer Price Index (CPI);

Example: NCD Urban Fares

Many commuters in NCD may not be aware that:

• The maximum urban PMV fare for NCD was 40 per adult passenger as published in the National Gazette No. 996 of 24^th December 2022, and applied from 2023 to 2025;
• In practice, and considering the convenience of change handling, PMV buses have been charging K1.00 per passenger instead of K1.40.

This practice is lawful, as the Prices Regulation Act prohibits charging above (in excess) of the maximum price (fare), but does not prevent operators from charging below the maximum price.

Based on ICCC’s key determination, the maximum urban fares for NCD will increase as follows:

*Note: concessions continue to apply

A similar approach applies to PMV fares on all other designated routes nationwide, using the base fares originally published in National Gazette No. 996 of 24^th December 2022, adjusted in accordance with the approved increases.

Urban and peri-urban routes

The ICCC is also aware that most urban PMV operators are charging K2.00 for longer urban and peri-urban routes, especially in NCD and Lae. The ICCC is working closely with the Road Traffic Authority (RTA), municipal authorities, and provincial administration to review and shorten certain routes to make it easier for enforcement and compliance.

Taxi fare adjustments

The approved maximum Taxi fares for 2026 are as follows:

The above adjustment applies to taxi services in all centres where taxi services are provided.

 The ICCC is also fully aware that almost all taxis do not use taxi meters, and continues to have ongoing discussions with RTA to find the best way forward.

 Enforcement

 The new fares are published in the National Gazette No. G.21 of 9^th January 2026, to take effect from January to December 2026. All gazetted fares are maximum;

 PMV and Taxi operators are encouraged to compete at or below these maximum fares.

• Charging above the approved maximum is illegal and constitutes a breach of the Prices Regulation Act.

 The ICCC also reminds the PMV and Taxi operators that the Parliament has passed the Prices Regulation (Amendment) Act 2025, which significantly increases the penalties for non-compliance:

 The current penalty is K10,000.00 if prosecuted summarily; and

• K30,000.00 if prosecuted on indictment.

All suppliers of regulated services, including PMV and Taxi service operators are required to comply with the law.

Copies of the National Gazette containing the new fares, and the Final Report explaining how the fares were determined, can be obtained from the ICCC’s Regional Offices in Port Moresby, Lae, Kokopo and Mt Hagen, or can also be viewed on the ICCC’s website at www.iccc.gov.pg.

All enquiries should be forwarded to Mr. Thomas Vue – Executive Manager-Prices Regulation Division or Mr. Samson Kolt – Principal Analyst on  telephone 312 4600 or via email tvue@iccc.gov.pg and skolt@iccc.gov.pg,  respectively.