Taxi operators should justify why a P10 additional fare increase from the current flagdown rate of P40 is necessary, the Land Transportation Franchising and Regulatory Board said Wednesday.
LTFRB board member Aileen Lizada said a petition should be filed for the Board to hear the operators’ views, as well as the side of the commuters that will be affected by the fare hike.
“If there is a petition for fare increase by taxi operators or any transport group, they need to justify why the Board should grant a fare increase and what services will be delivered. Likewise we need to hear the side of the commuters’ group before the Board issues an order,” Lizada said in a text message to reporters.
“If there is any request for a fare hike, it needs to go through a process. A petition must be filed by a petitioner,” she added.
In a radio interview Wednesday, Philippine National Taxi Operators Association president Bong Suntay said they are asking for an additional P10 over the current P40 flagdown rate, P13.50 for every kilometer of distance travelled and P2.50 for waiting time to mitigate the impact on drivers and operators of the higher excise tax for oil products under the new Tax Reform for Acceleration and Inclusion law.
The number of taxis operating in Metro Manila has significantly dropped because of high operating costs, and will be further affected by the impact of the TRAIN law unless a fare increase is granted by the LTFRB, Suntay added.
The LTFRB last granted an increase of taxi fares in October with rates set at P40 for the flag down rate, P13.50 for every kilometer of distance travelled, and P2 per minute of waiting time.
Under the TRAIN law, an initial excise tax of P2.50 per liter shall be imposed on diesel this year, eventually increasing to P6 per liter by 2020.
The Department of Energy has advised oil companies not to impose the new excise taxes to old stocks of petroleum products, as these are levied on importation and not at the point of sale to consumers. PNA