BAYAN OPPOSES 2025 LRT FARE HIKE

BAYAN OPPOSES 2025 LRT FARE HIKE

Bayan opposes in unequivocal terms the proposed LRT fare hike, the second fare increase under the Marcos administration. LRMC, the private operator of LRT 1 is proposing a significant average increase of P7.48 per passenger.

According to the petition for fare hike, the impact of the increase will be significant burden or commuters.

There will be an average increase of P6.02 for Mid-Distance Passengers, or passengers that travel between more than five up to sixteen kilometers. Around 30% of LRT-1’s passengers are Mid-Distance Passengers.

There will be an average increase of P8.65 for
Short-Distance Passengers, or passengers that travel five kilometers or less on the train system.

Meanwhile, there will be an average increase of only P12.50 for Long-Distance Passengers, or passengers that travel more than sixteen kilometers on the train system.

However, the maximum fare of P45 for a single journey ticket will become P60 under the new fare matrix. The previous fare of P30.00 for a single journey ticket from Dr. Santos to Quirino will be P40.00. As for stored value tickets, the maximum fare of P43.00 will increase to P58.00 for end to end trips. The previous fare of P26.00 from Dr. Santos station to Quirino will be P36.00.

The LRMC is invoking a provision in the privatization contract that allows them a regular, guaranteed fare hike when their notional fare is higher than the actual fare. They even say that they do not need to justify the increase because it is a contractual obligation. This shows how grossly disadvantageous the contract is to the public.

Part 1, Section C of the 2015 Concession Agreement states that the Notional Fare shall be adjusted on 1 August 2016 and every second anniversary thereafter (“Notional Fare Setting Date”) by an effective rate of 5% per annum or 10.25% per adjustment. This means that the private operator LRMC is entitled to a 10% fare hike every 2 years.

A P10.00 increase per trip translates to an additional P20.00 expense per day, an additional P100 per week and additional P400 per month. Meanwhile, wages have not substantially increased and inflation has quickened by end of 2024.

The private operators are citing “improved” services and claim that the fare hike is accepted by commuters. In the end, whether there are improvements or not, the private operators claim they are entitled to a fare hike.

We oppose these onerous terms. We also call out the DoTr “hearings” wherein the applicants and the so-called DoTr Rail Regulatory Unit go through the motions of minimum compliance with due process requirements even if the fare hike appears to be a done deal under the existing concession agreement. Bayan received the invitation to the hearing at 1am on January 8. The hearing is scheduled on January 9 at 9am.

We call on commuters to make their voices heard and to register their strong opposition to the fare hike. The Marcos regime is ultimately liable for the looming fare increase.

#FareHikeIbasura #NoToLRTFareHike