FARE FREEZE
PRESIDENT Ferdinand Marcos Jr. has ordered the Department of Transportation (DOTR) to defer fare increases for rail lines LRT-1 and LRT-2 “pending a thorough study on the economic impact” on commuters.
Transportation Secretary Jaime Bautista said 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 compliance with the President’s instruction, we will thoroughly study how a fare hike today will impact on passengers of our three rail lines in Metro Manila,”said Bautista, adding that the increase for MRT-3 was likewise deferred “due to infirmities in complying with the requirements and procedure.”
Bautista said the DOTR’s Rail Regulatory Unit (RRU) endorsed the report favoring the fare increase for LRT lines 1 and 2.
It can be recalled that the last approved fare hike for rail lines LRT-2 and MRT-3 was back in 2015. On the other hand, 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 Secretary 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 effectiveness of the contract,” said Secretary Bautista.
According to Bautista, the proceeds of the increase would have been used for the technical capability, services and facilities of the two rail lines.
“The fare increase will enable the two rail lines’ [LRT-1 and LRT-2] to improve their services, facilities and technical capabilities. The fare adjustment will help sustain the two commuter rail lines’ affordable mass transport services,” he said.
