Supply and demand forcing PMVs to overcharge on fares

A HIGH demand for bus services and the low supply is one of the reasons behind the illegal overcharging of fares by operators, according to the Independent Consumer and Competition Commission.
“In the National Capital District market, it is evident that the demand for PMV services is higher than supply. This market situation is a contributing factor that forces PMV operators to over-charge commuters,” said the commission’s chief executive, Paulus Ain, as he explained the enforcement initiatives being undertaken to address this, especially in Port Moresby.
“PMVs also fail to observe certain service standards, such as the completion of routes or serving a route which they are not licensed to do. We have investigated and prosecuted a number of offending PMV operators through the courts.
“These operators were fined and warned by the court to respect and comply with the fares set by the ICCC.”
Ain said that the ICCC was keen on partnering with authorities to increase the enforcement of the transport sector.
“For example, prior to the establishment of the Road Transport Authority, we have previously liaised with the Department of Transport on the possibility of a joint prosecution and suspension of PMV licences by the department for those found guilty by the courts for over-charging passengers.”