The petition to increase the flag-down rate of taxis to P60 is still under review, the Land Transportation Franchising and Regulatory Board (LTFRB) said.
While the agency has already granted a total of P10 increase in two tranches in September and October in 2022 to make the flag-down rate P50, LTFRB chairperson Teofilo Guadiz III said they are still reviewing the petition of taxi operators to make it P60.
“We are still studying the request of some taxi operators to increase the current flag-down rate to P60. We are still looking into the request as there are several factors to consider including its impact on inflation,” said Guadiz.
One of the major factors, he said, is the approval of the National Economic and Development Authority (NEDA) which he said is in the better position to come up with a position on the effect of the P60 flag-down rate to inflation.
Guadiz explained that while they understand the position of the taxi operators, the welfare of the riders, as well as the general public, is also being considered since an increase in the flag-down rate will have an effect on ordinary people.
“The discussion here is not only about the increase in the fare. The discussion also focuses on the effects on the economy.
What went before
The series of oil price increases and the increase on the vehicle spare parts have prompted transport groups, including taxi operators, to seek fare increases.
On the part of the taxi operators, it filed a request for a fare hike from P40 to P60 on June 24, 2022.
On Sept. 16, 2022, the LTFRB granted a P5.00 increase which made the flag-down rate P45 and an additional P5 on Oct. 7 of the same year after taxi operators sought for reconsideration.
This made the flag-down rate at P50 but some taxi operators opted not to recalibrate their meter, saying the increase is too minimal to warrant a recalibration which entails additional expenses.
Hope amid uncertainty
Guadiz pointed out that in granting the P60 increase in flag-down rate, the government must first determine its effect on the economy, which may include the prices of basic commodities.
He explained that it is similar to implementing fare increases wherein they also must first look into the overall impact of the fare hike nationwide.
"NEDA will ask how the increase will affect the inflation. If it triggers an inflation, then we may not grant the request because the impact of an inflation is nationwide. It will trigger an increase in prices but if the effect is minimal we may grant the increase," Guadiz explained.
He, however, assured the taxi operators that the LTFRB is now working on it, especially that taix operators did file a motion for reconsideration to make the flag-down rate P60.
"Since there is a new Board that just came in. We'll give the new Board at least two weeks to take the appeal. They just came onboard last week, so they still have to be briefed on the merits of the case before we come up with a decision," said Guadiz.