PNG Fuel Retailers and PMV Operators Warned Against Price Hikes Despite Subsidy Delays

Papua New Guinea’s fuel watchdog has moved to calm public concern over fuel prices, warning service station operators and public transport providers not to increase charges beyond approved limits despite delays in government subsidy payments.

 PNG Fuel Retailers and PMV Operators Warned Against Price Hikes Despite Subsidy Delays

The Independent Consumer and Competition Commission (ICCC) said reports had reached the regulator alleging that some fuel outlets in Port Moresby and other centres were charging consumers more than authorised fuel rates.

Speaking at a media briefing, ICCC Commissioner and Chief Executive Officer Roy Daggy said fuel pricing currently operates under two arrangements — the subsidised retail price and the approved maximum market price.

Mr Daggy explained that when government subsidy reimbursements are delayed, retailers may revert to charging the maximum permitted market price, describing this as the situation experienced over Friday and Saturday.

However, he made it clear that any outlet charging beyond the approved ceiling would face regulatory action.

He said compliance teams had already been alerted to cases both within Port Moresby and in other locations and inspections would continue to ensure businesses remained within approved pricing.

For May, Mr Daggy stated that maximum allowable prices in Port Moresby stood at approximately K6.24 per litre for petrol, K8.35 for diesel and K8.48 for kerosene. Under the government subsidy arrangement, motorists have continued paying rates maintained at March levels, including about K4.39 for petrol, K4.44 for diesel and K4.49 for kerosene.

The ICCC also turned attention to public transport operators, raising concerns that some PMVs were increasing fares or reducing routes due to uncertainty around fuel costs. Mr Daggy reminded operators that subsidies remain active and regulated fares still apply.

He encouraged commuters to document and report any cases of overcharging or route shortcutting by recording number plates and route details for investigation.

Mr Daggy said first-time breaches could attract penalties of up to K10,000, while repeat offenders may face fines reaching K30,000.

He acknowledged monitoring remains difficult during subsidy delays but said regulators would continue oversight while urging businesses and PMV operators to comply with existing laws.

“We encourage commuters to report any PMV operators overcharging fares or shortcutting routes. Take a picture of the number plate, route number and send it to us for investigation,” he said.