President Ferdinand Marcos Jr. has ordered the Department of Transportation to defer fare increases for the Light Rail Transit (LRT) lines 1 and 2 “pending a thorough study on the economic impact” to commuters after the agency announced the planned hikes on Tuesday.
During yesterday’s briefing, Transportation Secretary Jaime Bautista explained that the DOTr will comply with the President’s instruction and will carefully study the economic repercussions of the increase to passengers of the three major rail lines in Metro Manila, which includes the Metro Rail Transit 3 (MRT-3).
“In compliance with the President’s instruction, we will thoroughly study how a fare hike today will impact passengers of our three rail lines in Metro Manila,” the transport chief said, adding that the increase for MRT-3 was likewise deferred “due to infirmities in complying with the requirements and procedure.”
Bautista last March 27 approved the boarding fare increase of P2.29 and P0.21 per kilometer distance fare for LRT-1 and LRT-2. Currently, the boarding fare for both train lines is P11 plus P1 per kilometer.
He said the DOTr’s Rail Regulatory Unit (RRU) endorsed the report favoring the fare increase for LRT lines 1 and 2. The Transportation Secretary chairs the RRU and has the power to deny or approve proposed fare adjustments.
The last approved fare hike for rail lines LRT-2 and MRT-3 was back in 2015. The LRT-1, which was privatized in 2015, has filed petitions for fare adjustments in 2016, 2018, 2020, and 2022 — all of which, according to Bautista, were deferred.
The Light Rail Manila Corporation, which operates LRT-1, is allowed to apply for fare adjustments “of at least 10.25% every two years after the effectivity of the contract,” he said.
The proceeds of the increase would have been used for the technical capability, services, and facilities of the two rail lines, the secretary said.
“The fare adjustment will help sustain the two commuter rail lines’ affordable mass transport services,” Bautista added.
The RRU, on the other hand, rejected the petition of MRT3 for a fare increase due to its failure to comply with the required notice and publication.
Sought for comment, Jacqueline Gorospe, spokesperson of LRMC, said they will continue to work with the DoTr and LRTA on the next steps.
“We assure the riding public that we remain committed to our mission of providing a safe, reliable, and comfortable journey for LRT-1 commuters,” she added.