MANILA, Philippines — The Department of Transportation said that Lines 1 and 2 of the Light Rail Transit are due for a round of fare hikes, but an analyst is wary of the impact of these increases.
In a statement on Monday, DOTr Undersecretary for Railways Cesar B. Chavez explained that the services from these railways are “far better and more efficient now.”
“The government must respect the agreement it entered into with the private sector, and the government must also be sensitive to the welfare of the people in the long-term impact on the sustainability of the rail system,” Chavez said.
The DOTr is batting for fare hikes, since claiming that increases would mean more trains running in the system and giving the public better services.
Petitions to increase the fares of LRT-1 have been denied in 2016, 2018, 2020 and 2022.
LRT-1 is currently operated by the Light Rail Manila Corp., a consortium top billed by conglomerate Metro Pacific Investments Corp.
That said, the DOTr official explained that actual rates for end-to-end travel using LRT-2, which plies from Antipolo to Recto, costs P178 per passenger. Chavez explained that only P30 is being charged, which meant that the national government is subsidizing P148 for every commuter that takes the end-to-end route.
Sonny Africa, executive director at local nonprofit IBON Foundation, explained that if the fare hike petition is approved, it could pile on inflationary pressures.
“The timing of the petition introduces an inflationary pressure just when NCR consumers should be feeling relief,” he said in a Viber message.
The head of IBON Foundation pointed out that these planned fare increases will ensure returns for the private sector-led rail firms. The timing of these increases comes at a period of government austerity on social and economic services, Africa opined.
“The administration should however keep subsidizing fares to make this affordable for commuters, but even then with a long-run perspective to building its own capacity to run rail services to remove the profit premium on fares buil into all privatized transport schemes,” Africa added.
As it is, the DOTr already approved fare hikes within the LRT lines. Boarding fares would increase to P13.29, while charging P1.21 for every additional kilometer starting August 2.
Leonardo Lanzona, an economist at Ateneo De Manila University, said that fare increases should reflect their “true costs.”
“In this way, the fare hikes are justified. But the goal should be more long term,” he said.
“If Manila is too congested, and if the cost of living here has gone up, then more regions should be developed elsewhere,” Lanzona added.