The Independent Consumer and Competition Commission (ICCC) has clarified that while it closely monitors price movements for aviation fuel, it does not directly set the retail price of Jet A-1 fuel used by commercial aircraft.

The clarification comes in response to growing public concern over rising domestic aviation costs and subsequent increases in domestic airfares.

ICCC Commissioner Roy Daggy explained that aviation fuel operates under a distinct cost structure that separates it from standard petroleum products, whose maximum retail prices are directly regulated by the commission.

"While technical similarities mean that fluctuations in kerosene and other petroleum markets can correlate with aviation fuel trends, Jet A-1 pricing is subject to specialized technical and safety considerations unique to the aviation industry," Mr. Daggy stated. "Consequently, the ICCC’s mandate is strictly limited to monitoring these market movements rather than dictating the final prices charged to airlines."

Mr. Daggy also noted that the national government's targeted fuel subsidy arrangements continue to encompass aviation fuel support. This distinction separates state-level policy decisions regarding financial assistance from the commission's independent regulatory boundaries.

The ICCC emphasized that its position does not determine the exact extent to which fuel prices have driven up domestic ticket costs. Identifying the precise impact of fuel expenses on airfares would require independent disclosures from commercial airlines and aviation fuel suppliers.

This regulatory update aims to provide consumers with transparency regarding the commission's legal powers as debates persist over the affordability of domestic air travel across Papua New Guinea.