DOTr explains: LRT-1, LRT-2 fare hikes had Marcos Jr.'s blessing
MANILA, Philippines — 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."
Official policy to 'burden the people'?
Progressive group Bagong Alyansang Makabayan (BAYAN) yesterday questioned the imposition of a fare hike, saying that it contradicts the earlier pronouncement of the president.
"Why the rush to impose a fare hike for LRT? Why implement the fare hike when the President said the increase should be deferred? Does this mean the president has flip-flopped on the issue?" according to BAYAN secretary general Renato Reyes Jr.
"So the official policy is really to raise fares and burden the people. That much is clear now. The policy is truly insensitive to the plight of the Filipino commuters."
Reyes added that the DOTr has not yet provided them the fare hike resolution by email or any electronic means, thus depriving them of a means to file a motion for reconsiderations or appeal the ruling before the Office of the President.
"Even the DoTr cannot follow its own sham rules on raising fare," said Reyes.
Officials of the LRTA, MRT-3 and the LRMC were earlier grilled by BAYAN and other stakeholders in a public consultation last February 17, this after plans to decrease state subsidy on trains were proposed. This was done even after the Congress already approved the budget for 2023.
Instead of lowering subsidies, transport advocates are challenging the government to further increase it to better serve the public without additional costs.
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