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Declared Services

CCC regulates and monitors only the goods and services that are declared by the Minster for Treasury. These declarations are made under Section 10 and 32A of the Prices Regulation Act.

Currently the Commission provides regulatory oversight for the following services:

  1. PMV & Taxi Fares
  2. Petroleum Products (Petrol, Diesel, & Kerosene)
  3. Water & Sewerage;
  4. Stevedoring & Handling

1. PMV & Taxi Fares

The Commissions sets the PMV fares for all PMV routes in the country, both the urban and rural PMV routes, and also set he taxi fares especially in centres where taxi services are provided. Currently, taxi services are only provided in Port Moresby, Alotau and Rabaul. The regulatory period for PMV & Taxi is set for five years, and taxi fares are adjusted annually. Core factors used by the Commission to determine the fares are fuel prices and CPI.

2.Petroleum Products

The 1997 Napa Napa Project Agreement between the State and InterOil sets the platform of the Petroleum Industry in the country. The Commission only administer the section of the project agreement that concerns the supply and pricing of the petroleum products, particularly petrol, diesel and kerosene. The Commission work alone side InterOil (now Puma Energy) on a monthly basis to calculate the Import Parity Prices (IPP) for these petroleum products and eventually determine monthly fuel prices, after incorporating quarterly domestic road and sea freights and kina exchange rates.

3. Water & Sewerage

Under the current price control arrangement for Water & Sewerage, the Commission determine the tariffs for the water and sewerage services in the country on annually basis since 2010. The two water companies are Eda Ranu, which provides the water and sewerage services only whit the vicinity of Port Moresby City, and Water PNG, which provides the services to other parts of the city apart from Port Moresby. These two companies submit to the Commission their tariff rate for the following year and the Commission approves it if the tariff falls within the price part set by the Commission. The current regulatory period will end in December 2014.

4. Stevedoring & Handling

Unlike other three services, the Commission applies monitoring form of regulation to Stevedoring and Handling. Under this arrangement, the licensed stevedoring companies operating in the declared Ports within PNG submit to the Commission on a quarterly basis their stevedoring and handling charges and the Commission measured these charges against certain benchmark prices. If there is some form of divergence between the prices, the Commission seek clarifications form these Stevedoring companies and if the Commission is not satisfied, the Commission may propose to the Minister to declare the service for Direct Price Control.

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