Official: Using taxis with metres costs much less

The National Transport PNG

By SERAH LAGDOM
The negotiate-and-pay system currently used by taxis is cheating most commuters.
“Commuters have the right to tell the taxi driver to run the metre as soon as the vehicle is moving. Charging a commuter by the metre costs less,” Independent Consumer and Competition Commission (ICCC )
has stated.
According to the ICCC K2.40 was the standard fare and should be charged per kilometre.
“For taxi services, the current flag fall rate is K1.80.
“This is the starting rate when the passenger actually gets into the taxi.
The current distance rate is K2.40 per kilometre.
“However, as we all know a lot of taxis are not using their meters even though most of them have installed the meters in their vehicles.”
It said most commuters were not aware that using the metre actually cost less. Thus commuters should get on taxis with working metres.
The last review in 2014 found that determining the appropriate fares was hindered by the following factors:

  • Lack of representation by PMV and Taxi operators;
  • Lack of reliable records of revenue and operational costs by PMV operators;
  • Unwillingness of PMV operators to provide information;
  • Poor and unreliable records of PMVs, approved routes, road conditions and distances by relevant agencies;
  • Non-existence of Provincial Land Transport Board in certain provinces.

The ICCC started its direct regulation of PMV and Taxi fares in 2007 after undertaking aregulatory review.
Prior to that, ICCC had delegated this responsibility to the National Land Transport Board (NLTB).
“The current Regulation of PMV and Taxi fares are guided by a Regulatory Framework which commenced on Jan 1, 2015 and will end on Dec 31, 2019.
“Under this regulatory framework, PMV and Taxi Services are declared for regulation bythe Minister under Section 10 (1) (b) of the Prices Regulation Act (PR Act).
“Also, PMV fares have being declared under 21 of the PR Act for the purposes of price control by the ICCC .
“Despite competition in PMV and Taxi services on some routes, fares continue to be regulated because of the inability of passengers to exercisetheir countervailing power and the ability of operators to collude and set higher fares.
“ICCC ’s role in the PMV industry is confined to fare setting but fares must to tied to other aspects of the industry’s aspects like services and safety standards.”
The current concerns include:

  • Operators charging above the maximum fares;
  • Passengers not paying the required fares;
  • PMVs not completing their designated routes;
  • Poor conditions and road worthiness of PMVs;
  • Deteriorating road conditions;
  • PMV operators colluding to withdrawal PMV services.

Just like in any other industry regulated by ICCC , any increase in fares or tariffs must be tied to improved delivery of services.
“PMV and Taxi Industry periodic review is every five years and the next one is scheduled for next year.”

  • ICCC to start review process at the beginning of 2019. ICCC will undertake wider consultation.
  • Review to consider current circumstances.

Including the form of pricing mechanism or fare setting.
Determination of pricing setting formula.

  • Encourage all stakeholders to participate and provide information requested by the ICCC for the purposes of the review.
  • ICCC alone will not address all the issues and concerns on PMVs. It needs a holistic and coordinated effort from the key stakeholders such as the Transport Department, RTA, MVIL, Traffic Police, Motor Vehicle Registry and others.