LTFRB OKs taxi fare hike, sets flagdown rate at P40
The Land Transportation Franchising and Regulatory Board (LTFRB) approved on Wednesday the taxi industry’s request for a fare increase, the first in seven years, that is seen to help taxi drivers become more competitive amid the surge of app-based transport services.
In its eight-page decision, the LTFRB cited inflation, the rising cost of fuel and the worsening traffic as among its reasons for approving the fare hike.
Under the new taxi fare structure, the flagdown rate for the first 500 meters in the National Capital Region will be pegged at P40, while in the Cordillera Administrative Region the rate will be pegged at P35.
In computing the succeeding rates, the LTFRB changed its formula from a per 300-meter basis to a per kilometer rate of P13.50. This is slightly higher than the P10.50 currently charged for the succeeding 900 meters.
The LTFRB also did away with the P3.50 rate for every two minutes of waiting time. Commuters would instead be charged P2 for every minute of their travel time.
LTFRB board member Aileen Lizada said the rate hike would become effective a day after the order is published in the newspapers. The order will be published no later than Thursday, she said.
The LTFRB, however, has yet to set a date on the calibration of the taxi meters.
“[T]he need to adjust fare rates for taxi services is necessary for them to level up their services at par with new transportation modes,” the LTFRB said in its decision.
The fare adjustment means that a 10-km trip from Ayala Avenue in Makati City to Cubao in Quezon City, would cost the taxi rider P265. The rate is slightly higher than the regular rate offered by app-based Grab (P236) and Uber (P234).
But Maricor Akol, president of the National Center for Commuters Safety and Protection, said that drivers and taxi operators should improve their services and the way they deal with passengers. -Jovic Yee