NOTICE TO PMV AND TAXI OPERATORS, AND COMMUTERS ON FUEL COSTS AND FARES FOR ALL APPROVED ROUTES IN PNG

The Independent Consumer and Competition Commission (ICCC) advises that the global fuel market is currently volatile due to the protracted conflict in the Middle East. This has affected world prices of fuel imported into the country, consequently leading to high domestic prices.

However, over the past six months, the Government has been subsidizing the increases in fuel prices, keeping retail fuel prices at the March level. Amidst the Government’s Fuel Subsidy program, the Government is faced with a tight policy space given the spike in fuel prices coupled with the effects of El Nino on the supply and prices of goods and services. Through the recent NEC Decision No. 225/2026, the government has decided to continue subsidizing fuel prices but to also pass on some cost increases to consumers. The ICCC emphasizes that while this decision has now seen increases in fuel prices in September and again this month (October 2026), these increases are below the true or actual prices if there was no subsidy intervention at all.

At the pumps, consumers will see increases of K1.00 per litre which is still a heavily subsidised price, well below the full retail price if it was to be based on full international prices and approved margins for wholesalers and retailers. For example, for diesel, the pump price for Port Moresby is K5.90, well below the unsubsidised price of K7.31. There remains a large subsidy of K1.41 per litre, consisting of the GST exemption of K0.66 and a direct subsidy paid to fuel importers of K0.75. Similar applies to other centres as well. International prices have increased significantly since September, and the fuel subsidy arrangements continue to help protect consumers market prices which remain elevated since the ongoing conflict in the Middle East.

The increase in fuel prices will directly cause the prices of other goods and services especially in the food, utilities, energy and transport sectors. The price of fuel has a major direct impact on the approved Public Motor Vehicle (PMV) and taxi fares set by the ICCC. Any increase in fares due to the increase in fuel has to be assessed and approved by the ICCC. Given only 2 months away before the ICCC make the necessary annual adjustment to the maximum PMV and taxi fares to apply in 2027, the ICCC is deliberating on a way forward, to address the current spike in fuel cost on public transport. The ICCC will make a formal announcement to all PMV and taxi operators as soon as a decision is made.

Furthermore, consumers are expected to pay higher prices for most goods and services in the coming months if the war in the Middle East continues. Consumers are also encouraged to practice thrifty habit and stick to strict budget as what is currently affecting PNG is not confined to PNG’s domestic policy or regulatory inadequacies but is a global phenomenon, imposed on PNG externally due to globalization and PNG’s integration into the global market system through international trade and finance.

The ICCC will work closely with other relevant Government agencies and the industry to ensure that the ICCC’s regulatory decisions align with Government policies, ensuring a resilient and workable market economy, and importantly, our consumers are protected from unreasonable and excessive prices and any spillover effects on the broader economy.

The ICCC understands the struggle that PMV and taxi operators are facing in delivering the much-needed public transport services to our people, thus it will fast-track a practical solution and communicate accordingly through the public domain.

All enquiries regarding this Public Notice can be forwarded to the Prices Regulation Division on telephone 312 4600 or via email prd@iccc.gov.pg.