BAGUIO CITY – The implementation of the P50 taxi flag down rate in the city generated mixed reactions among operators, drivers and the commuting public over the past several days.
A 56-year old taxi operator, who requested anonymity for personal reasons, welcomed the decision to increase the taxi flag down rate, saying that the same has been long overdue as they had to wait for more than one and a half year before it was granted.
He stipulated that the increase had already been overshadowed by the unstoppable increase in the prices of basic commodities aggravated by the recent hike in oil prices and the unpredictable inflation rate.
On the other hand, a 38-year old driver raised concern on the possible decline in the passengers patronizing the use of taxis because of the increase in the flag down rate, saying that the same might have an effect on their projected daily income.
The taxi driver also hopes that operators will not unduly and unreasonably increase their boundaries so that they will still be able to earn decent income amidst the possibility of a significant decrease in their passengers when the flag down rate increase will be effected.
In a random interview with individuals patronizing taxi services, most of them branded the decision to increase the taxi flag down rate as an added burden to their current woes relative to the skyrocketing prices of basic commodities aggravated by inflation that will render their salaries and wages already insufficient to sustain the living condition of their families, thus, concerned government agencies should already decide on proposals for another wave of wage increase the soonest.
The Land Transportation Franchising Regulatory Board (LTFRB) fixed the flag down rate for regular taxis around the country at 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 PhP5 previously approved in a decision dated September 16, 2022.
Under the said order, regular taxi services flag down rate will be from PhP45 to PhP50 in Metro Manila and other provinces while in the Cordillera Administrative Region, the flag down rate will be from PhP40 to PhP50.
The board pointed out that the PhP50 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 PhP5 increase in the flag down rate, thereby totaling to PhP45 for Metro Manila and other provinces and PhP35 to PhP40 for taxi services in the CAR.
In their 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 PhP5 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 PhP60.
Further, the petitioners prayed for an additional increase of PhP10 from the current base far, thereby increasing the flag down rate to PhP55.
In partially granting the motion, the board observed that there is a flag down rate difference between CAR, which is set at PhP40, and other regions which is set at PhP45, 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 PhP40 to PhP50, which is the same as the current flag down rate for regular taxi services in all other regions. By Dexter A. See
