BAGUIO CITY – The Land Transportation Franchising Regulatory Board (LTFRB) fixed the flag down rate for regular taxis around the country to P50 after partially granting the motion for reconsideration of a number of taxi groups operating in the different parts of the country.
In an order dated March 18, 2024 which was posted on the facebook page of LTRB-CAR, the board granted the increase in the flag down rates of taxis on top of the P5 previously approved in a decision dated September 16, 2022.
Under the said order, regular taxi services flag down rate will be from P45 to P50 in Metro Manila and other provinces while in the Cordillera Administrative Region, the flag down rate will be from P40 to P50.
The board pointed out that the P50 flag down rate is permanently authorized for all regular taxi services, both air conditioned and non-air conditioned, nationwide including CAR.
Earlier, petitioners, Philippine National Taxi Operators’ Associations, Inc., RLC Over Cabs, Inc., Metro Cebu Taxi Operators Association, Inc. and Association of Taxi Operators of Panay, Inc., filed a motion for reconsideration relative to the decision dated September 16, 2022 on the petition for fare increase granting a P5 increase in the flag down rate, thereby totaling to P45 for Metro Manila and other provinces and P35 to P40 for taxi services in CAR.
In the said motion, the petitioners alleged that they were allegedly denied due process of law as they were never consulted nor made party in the determination of the fare adjustment formula; the main consideration is the adjustment in fuel prices only without due regard to inflation, peso-dollar exchange rate, increase in the cost of living, labor and operation cost; the fare adjustment formula is applicable to public utility jeepneys and not to taxis; the fare adjustment for the distance related portion of the fare structure; the use of fare adjustment formula is detrimental to the petitioners and the entire taxi industry and the P5 increase in the flag down fare is grossly insufficient and will result to diminution of compensation to the drivers, substantial losses to the operators and detrimental to the industry where the gross receipt net of fuel cost is maintained at P60.
Further, the petitioners prayed for an additional increase of P10 from the current base far, thereby increasing the flag down rate to P55.
In partially granting the motion, the board observed that there is a flag down rate difference between CAR, which is set at P40, and other regions which is set at P45, both of which was set by virtue of the decision sought to be reconsidered.
The LTFRB claimed that the difference in the flag down rate dates back to year 2011 with the rationale that barangays in Baguio City are usually within the 4-6-kilometer distance and the cold weather in the CAR does not really require the use of air conditioning.
The board also noted that fare rates for other denominations do not consider regional distinction, thus, to standardize the application of rates for regular taxi services, it deemed it necessary to authorize an increase in the flag down rate of CAR regular taxi services from P40 to P50, which is the same as the current flag down rate for regular taxi services in all other regions. By Dexter A. See
