The Land Transportation Franchising and Regulatory Board approved last October an increase in transportation fares for all vehicles for public use, supporting calls of public utility drivers and operators who have been heavily affected by the jump in local fuel prices.
Effective 6 October 2022, the minimum fare for traditional public utility jeepneys increased by P1, to P12, and P14 for modern PUJs. For every succeeding kilometer, the fare has increased from P1.5 to P1.8 for traditional PUJs, and from P1.8 to P2.2 for modern PUJs.
The uniform base fare for the city and provincial buses also increased by P2 for the first five kilometers, with an additional 35 to 50 centavos for each succeeding kilometer, depending on the kind of bus.
For public utility buses, the fare for succeeding kilometers has increased from P1.85 to P2.25 for ordinary PUBs; from P2.20 to P2.65 for airconditioned PUBs; and from P1.55 to P1.90 for provincial PUBs.
Meanwhile, the flag-down rate of taxis and sedan-type (Transportation Network Vehicle Service or TNVS) has increased to P45; P55 for Asian utility vehicles/sport utility vehicles; and P35 for hatchback-type.
All these go along with the increasing prices of basic commodities which are contributing to a higher inflation rate.
Yet, according to news reports, the country’s sole TNVS operator, Grab Philippines, continues to be embroiled in alleged controversial overcharging of its passengers despite its voluntary commitment not to do so. According to Grab, the price increase was aimed to discourage its passengers from booking short trips.
The LTFRB thus initiated an investigation to probe into the fare surcharge, especially as passengers are blindsided as to when exactly the fare increases happen.
According to Lawyers for Commuters Safety and Protection President, Atty. Ariel Inton, Grab should explain when a fare surcharge is implemented given the number of factors involved such as time, distance, and fare adjustment on top of the base fare.
If the allegations are proven true, Inton recommended that the ride-hailing app be slapped with a P5,000 fine for every incident of overcharging.
Clearly, the issue on Grab Philippines’ overcharging issue speaks of the need for the country to craft more stringent rules and regulations that would govern transportation firms and ensure that the commuting public would be offered the cheapest fare possible.
Recall that the issue of overcharging is no longer new as Grab’s takeover of the assets and driver contracts of its sole competitor, Uber Philippines, in 2018, also resulted in higher ride-hailing fares.
At a recent House Committee hearing, Philippine Competition Commission Division Chief for Notification Division Mergers and Acquisition Juan Antonio Arcilla said the PCC was only waiting for Grab to show compliance regarding its 2018 voluntary commitments.
The PCC also admitted that the quality of Grab’s services worsened when it took over Uber.
Through more stringent rules, the public would be more assured of protection from higher fare prices. In addition, only when we have stricter laws and regulations will we be able to lure more investors to compete with Grab Philippines and level the playing field in the TNVS industry.