MANILA — President Ferdinand “Bongbong” Marcos Jr. agreed to raise fares — an increase he wanted deferred in April — on the LRT-1 and LRT-2 because inflation was already easing, according to the Department of Transportation.
Transportation Assistant Secretary for Railways Jorjette Aquino on Tuesday explained the rationale behind the impending August 2 fare hike in an interview by CNN Philippines.
“On June 6, Secretary [Jaime Bautista] met with the president wherein [he] gave a statement that the inflation rate has improved from 6.6% to 6.1% and that the employment rate is also increasing,” explained Aquino.
“So he gave us the instruction that we can now proceed with the implementation of the fare increase for LRT-1 and LRT-2.”
Marcos earlier ordered the deferral of the LRT-1 and LRT-2 fare hikes in April in light of rising prices.
The Light Rail Manila Corporation (LRMC), the private operator of the LRT-1, earlier filed for a petition of fare hike way back in April 2022.
LRMC had filed for multiple fare hike petitions in the past, but to no avail. Part of the LRT-1’s privatization concession agreement includes the power to request for an increase every two years: either periodic or via an inflation rebasing method in coming up with the notional fare.
The Light Rail Transit Authority, the government-run owner and operator of the LRT-2, and the privately run Metro Rail Transit Line 3 also filed a petition for fare increase.
“Based on that, they filed it with [the] LRTA and the board then had a consensus with the fare increase committee of the LRTA that it would best implement a fare increase for LRT line and 2 basing it on the inflation [rate] of 2018.”
“The P13.29 new fare or increase of P2.29 per boarding fare and P0.21 per kilometer was actually what was approved by the board of the LRTA.”
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