Negosyante News

January 10, 2025 10:12 am

DOTr to Decide on LRT1 Fare Hike Petition Within 30 Days

The Department of Transportation’s (DOTr) Rail Regulatory Unit (RRU) is set to decide on the Light Rail Manila Corp. (LRMC) petition to increase fares on the Light Rail Transit Line 1 (LRT1) within the next 30 days.

Fare Hike Proposal

The LRMC, which operates LRT1, has proposed an average fare increase of ₱7.48 per passenger. If approved, the maximum fare for a single journey would rise from ₱45 to ₱60.

The current fare structure includes a ₱13.29 boarding fee and a ₱1.21 per-kilometer increment, last adjusted in 2023.

Process and Timeline

DOTr Assistant Secretary for Railways Jorjette Aquino explained the timeline:

  • If approved, the decision must be published in a newspaper for three consecutive weeks.
  • The fare adjustment will take effect 30 days after the final publication.
  • This places potential implementation approximately two months from now.

Aquino emphasized that the decision could result in no increase, full approval of the proposed amount, or a partial adjustment.

LRMC Justification

LRMC president and CEO Enrico Benipayo defended the petition, citing:

  • An 87% increase in working light rail vehicles (from 77 in 2015 to 144).
  • Close to 100% daily system reliability, punctuality, and availability.

He also noted that LRT1 has only had one fare increase since LRMC’s private takeover in 2015, despite being allowed to adjust fares every two years.

Benipayo stated that deferred fare hikes have resulted in a ₱2.17 billion fare deficit as of November 2024, which could reach ₱7 billion by 2028 without adjustments. He argued that raising fares would prevent the government from absorbing the deficit, freeing up funds for other priority projects.

Opposition to Fare Hike

Several groups opposed the petition during the public hearing:

  • Make It Safer Movement, a commuter advocacy group, warned that the increase could burden commuters with an additional ₱240 to ₱500 per month.
  • Bayan, a militant group, issued a statement opposing the hike.
  • National Center for Commuter Safety and Protection (NCCSP) chairperson Elvira Medina expressed conditional support, emphasizing that any increase must lead to tangible improvements in train services.

Next Steps

The DOTr-RRU will evaluate the petition alongside stakeholders’ feedback and is expected to release its decision by early February.

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