THE Land Transportation Franchising and Regulatory Board (LTFRB) announced on Tuesday, November 26, that it is currently evaluating a request from taxi operators to increase the flag-down rate to ₱60.
LTFRB Chairperson Atty. Teofilo Guadiz III said the agency is considering multiple factors, including the potential economic impact, before deciding on the fare hike.
“We have to determine its effect on the economy, especially on inflation, before granting the request,” Guadiz explained.
Timeline of Requests and Approvals
The call for an increase to ₱60 began on June 24, 2022, when taxi operators first submitted their proposal. Since then, the LTFRB has approved incremental fare hikes:
September 16, 2022: The flag-down rate was raised by ₱5, from ₱40 to ₱45.
March 18, 2024: Another ₱5 was added, bringing the rate to ₱50.
Despite these adjustments, taxi operators filed a motion for reconsideration on October 7, 2022, seeking an additional ₱10 increase to achieve a ₱60 flag-down rate.
Balancing Fare Hikes and Economic Impact
Chairperson Guadiz emphasized that any fare increase must undergo careful scrutiny due to its potential ripple effects on inflation and the prices of basic goods.
The LTFRB is awaiting a report from the National Economic and Development Authority (NEDA) on the matter.
“If NEDA determines that the increase would significantly trigger inflation, we may not approve it. But if the effect is minimal, we could grant the request,” Guadiz said.
The LTFRB chief also noted that fare hikes could indirectly impact consumers, as higher transportation costs might lead to increased prices for goods transported by taxis.
A New Board and Ongoing Discussions
The LTFRB’s new Board is expected to deliberate on the appeal within two weeks.
“This new Board works quickly, but they just came onboard last week. They need time to review the case,” Guadiz assured.
In the meantime, Guadiz reiterated the agency’s commitment to addressing the concerns of taxi operators. While the current flag-down rate stands at ₱50, he acknowledged the importance of a thorough review before any further adjustments are made.
“This decision involves more than just transportation fares. We must also consider its implications for the broader economy,” Guadiz concluded.