By means of Ashley Erika O. Jose, Reporter
COMMUTERS are likely to pay higher fares on the Light Rail Transit Line 1 (LRT-1) by April as the Transport Department is expected to decide on the private operator’s fare adjustment within 30 days.
The Department of Transportation’s (DoTr) Rail Regulatory Unit (RRU) will rule on Light Rail Manila Corp.’s petition within 30 days of the Jan. 9 public hearing. (LRMC), Transportation Assistant Secretary for Railways Jorjette B. Aquino said.
“Based on the published rules and regulations of the RRU, the RRU should make a decision, maximum 30 days after the hearing,” Ms. Aquino told reporters on Thursday on the sidelines of LRMC’s public hearing on tariff adjustments.
If the RRU decides to accept and allow a rate increase, the petitioner will be required to publish the decision in major newspapers within three consecutive weeks, and the new rate will be implemented within a further 30 days from the last date of publication of the decision, Ms. Aquino said.
However, Ms. Aquino clarified that, if approved, the rate increase could be lower than LRMC’s original proposal.
“There is a possibility that the rate increase will not be granted, there is a possibility that their actual request will be granted, but there is also a possibility that it will be granted but for a lower amount than they requested,” she said.
LRMC’s request would increase the total fare for an end-to-end trip on the LRT-1 to P60 for a one-way trip. This is P15 more than the current fare of P45 from FPJ Station (formerly Roosevelt) in Quezon City to Baclaran Station in Pasay, including the last station of the Cavite Expansion Phase 1.
For stored value card users, the maximum fare would increase to P58, compared to the current P43 for end-to-end travel.
“But if the RRU decides not to accept the tariff increase, it will stop there,” Ms. Aquino said.
“In the event of a rate increase being granted, for whatever amount…[it will be implemented] approximately two months and three weeks to three and a half months,” she said, noting that this takes into account that no party would challenge the decision or request a reconsideration.
The current boarding fare at the LRT-1, which was approved in 2023, is P13.29 with an increase of P1.21 per kilometer of distance.
LRMC President and Chief Executive Officer Enrico R. Benipayo said that while LRMC welcomes the rate adjustment approved in 2023, it is well below the notional rate and has resulted in a rate shortfall of P2.17 billion.
Justifying the petition for a fare increase, LRMC said in its petition that it has made substantial operational improvements and system upgrades “at a cost of P24 billion” since it took over the LRT-1 in September 2015.
“We have committed ourselves to fulfilling certain obligations under the concession agreement. The biggest of which is actually making investments to improve the system, obviously to provide better service to the driving community. Currently, our total investment is around $45 billion,” said Mr. Benipayo.
In a statement, Akbayan Party List Representative Percival V. Cendaña urged the DOTr to reject the LRT-1 operator’s proposal for a fare increase, arguing that it would only burden the working class and the public’s transportation experience would deteriorate.
“LRMC’s timing could not have been more insensitive. They are looking for fare increases of up to P12.50 per trip, while 63% of Filipino families are already struggling to make ends meet,” former party-list congressman Ferdinand R. Gaite said in a statement.
Furthermore, urban transportation and mobility advocacy group AltMobility PH said public transit like LRT-1 is critical to public transportation.
“We want our options, including public transportation like LRT-1, to be of good and reliable quality. We need more direct investments in quality public transport,” said AltMobility PH.
It added that operating and maintaining the railway is capital intensive, “making LRMC’s petition to increase fares in general understandable.”
However, the group said fare increases should be carefully examined.
“We need low-slung, short-term solutions such as active mobility provisions, fare subsidies for those in need, contracts for services and ensuring that public transport workers receive a living wage,” AltMobility PH said.
LRMC is the joint venture of Ayala Corp., Metro Pacific Light Rail Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.
Metro Pacific Light Rail is part of Metro Pacific Investments Corp., one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT Inc. and Philex Mining Corp. Hastings Holdings, Inc., a part of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., retains an interest in Business world through the Philippine Star Group, which it controls.