The country’s consumer watchdog has given the thumbs up for the increase of public transport fares going forward. 

The Independent Consumer and Competition Commission (ICCC) is advising all licensed Public Motor Vehicle (PMV) and Taxi Operators, as well as the general public, that it has decided to bring forward certain approved fare increases in response to the recent significant rise in fuel prices in October 2026.

Under the regulatory determinations made following the 2024 PMV and Taxi Fare Review, the ICCC provided for phased cost-recovery increases during the current regulatory period (2025–2029), alongside adjustments reflecting movements in the underlying Consumer Price Index (CPI) and Fuel Index.

For PMV fares, the phased cost-recovery component is 20% per year for 2025, 2026 and 2027. The first phase was incorporated into the approved fares for 2026. As a result, the maximum approved urban fare in Port Moresby increased from K1.40 to K1.60; in Lae from K1.30 to K1.50; in Mt Hagen from K1.10 to K1.30; and in Kokopo from K1.40 to K1.60.

For Taxi fares in Port Moresby, the ICCC’s 2024 review provided for phased increases of 16% in 2025, 14% in 2026 and 10% in 2027. The review found that taxi operations in Port Moresby were operating at approximately 40% below cost, while taxi operations in other centres were operating at break-even. Accordingly, the regulatory framework provided for CPI and Fuel Index adjustments for Taxi fares in other centres during the 2025–2029 regulatory period.

In light of the significant increases in fuel costs, the ICCC has decided to bring forward the 20% phased PMV fare increase in all centers and routes in PNG including the 14% phased Taxi fare increase applicable to Port Moresby.

The ICCC has also decided to apply the corresponding Taxi fare adjustment to all centres in Papua New Guinea where taxi services operate.

1. Interim PMV Fare Adjustments 

The approved maximum urban PMV fares in the following centres will be adjusted for the period October to December 2026 as set out on the over page:

In other urban centres and non-urban centres, the current approved maximum PMV fares will also increase by 20%, subject to applicable concessions. These interim adjustments apply from October to December 2026.

2. Interim Taxi Fare Adjustments 

The approved taxi fare components will be adjusted for the period October to December 2026 as follows:

Taxi operators are required to install and use taxi meters in accordance with applicable transport laws. The ICCC will work with the Road Traffic Authority (RTA) to ensure that taxi licences are issued only where the required meters have been installed and calibrated to apply the ICCC-approved fares.

3. Regular Annual Adjustment and Publication of Fares 

In December 2026, as part of its regular annual adjustment process, the ICCC will adjust the unrounded fares to reflect movements in the CPI and Fuel Index. The resulting fares will apply starting January 2027.

The ICCC will publish the complete schedule of interim adjusted fares for all centres in the National Gazette. The Gazette will also be provided to relevant sector authorities enforcement agencies and regulators, including the respective Provincial Administration, to assist with distributing the approved fares to PMV and Taxi operators throughout the country.

4. Compliance and Enforcement 

The ICCC regulates fares on a market-based basis, taking account of inflation and relevant cost movements, with the aim of allowing operators to recover efficient costs and earn an appropriate return on investment while protecting commuters from overcharging.

The ICCC will work with relevant authorities, including the RTA, the Police Traffic Directorate and Provincial Administrations, to promote compliance and enforce the approved fares under the Prices Regulation Act and other applicable laws. Operators who charge fares above the approved maximum will be prosecuted under the Prices Regulation Act. The penalties stated under the Prices Regulation (Amendment) Act 2026 are K10,000 for summary prosecution or K30,000 on indictment.

For all enquiries and complaints, please contact the ICCC’s Prices Regulation Division and the Consumer Protection Division on telephone 312 4600 or via email prd@iccc.gov.pg, or complaints@iccc.gov.pg.