We have recently monitored news that the LTFRB has approved a substantial fare hike for the LRT 1 and 2. This means the boarding fare will increase by P2.29 and distance fare will increase by 21 centavos.the The new boarding fare will become P13.29, while the distance fare will increase to P1.21 per kilometer both in LRT-1 and LRT-2. The fare hike comes amid record inflation affecting Filipino consumers. The resolution now awaits final approval from the secretaries of the DoTr, DPWH, DoF, DBM and NEDA
 
The news reports do not mention any public hearings conducted by the LTFRB and LRTA after the petition for fare hike was filed. Why is this so? Were there no widespread public hearings done? News reports say that the petition for a fare hike was filed by LRMC, the private operator, last April 2022. The DoTr said in May 26, 2022 that there would be no fare hike amid rising inflation, which at that time was at 4.9%. Inflation at end of December 2022 already reached 8.1%. So why will a fare hike be granted now?
 
If there were no real public hearings conducted, then this fare hike approval is patently questionable and should not push through. It is a violation of the rights of the commuters. If the LRMC and LTRFB will argue the current concession agreement does not provide for any hearings insofar as fare hikes are concerned, then we again return to the problem with the concession agreement and the policy of privatization as being anti-commuter. These are some of the questions we have raised in our SC petition in relation to the LRT privatization contract.
 
What is even more worrisome is that under the contract, if LRMC cannot be granted a fare hike, then it is government which will shoulder the difference between the current fares and the proposed fares. This is nothing more than a sovereign guarantee for the profits of LRMC. In the end, taxpayers will be made to shoulder the fare hike. It is on record that private operator LRMC has filed for arbitration, demanding P2.67 billion in compensation after it was not allowed to raise fares in the previous years. This is how privatization burdens the people, commuters and taxpayers alike.
 
We call on the public to oppose the LRT fare increase and the continuing privatization of mass transport, and the onerous contract terms in the concession agreement with LRMC.
 
Categories: Statements

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