LTFRB Reviewing Proposal to Raise Taxi Flag-Down Rate to ₱60

The Land Transportation Franchising and Regulatory Board (LTFRB) is currently reviewing a proposal to increase the taxi flag-down rate to ₱60, taking into account its potential impact on the Philippine economy.

In a statement, LTFRB Chairperson Attorney Teofilo Guadiz III explained that factors such as inflation and economic repercussions are being closely examined before a decision is made.

“If it triggers inflation, we may not grant the request because the impact of inflation is nationwide. It will trigger an increase in prices. But if the effect is minimal, we may grant the increase,” Guadiz said.

Economic Implications

Guadiz emphasized that raising the flag-down rate could affect not just taxi passengers but also the cost of goods, as the increased transportation costs might be passed on to consumers.

“We’re not just talking about the fares. It affects the economy. Of course, for people riding the taxi, especially if there are commodities, the cost will be passed to consumers, and that will impact the price of goods,” he added.

Background and Pending Decision

The motion to increase the flag-down rate from ₱40 to ₱60 was first filed by taxi operators in June 2022.

• A ₱5 increase, bringing the rate to ₱45, was approved in September 2022.
• Another ₱5 increase raised the current flag-down rate to ₱50.
• A motion for reconsideration to bring the rate to ₱60 remains under review.

Guadiz assured that the newly appointed LTFRB Board would decide on the matter within two weeks, as they are currently being briefed on the merits of the case.