Grab asks LTFRB for five-percent fare rate hike

App-based ride hailing service Grab Philippines on Friday filed a petition before the Land Transportation Franchising and Regulatory Board (LTFRB) to increase its fare rates by 5 percent due to higher excise tax on petroleum products under the tax reform program.

"On behalf of its drivers nationwide, ang Grab po ay humihingi ng 5 percent increase sa fare po... this 5 percent is equivalent to P11 to P15 per kilometer per trip," Grab Philippines head for public affairs Leo Gonzales told reporters during the transport network company's filing at the LTFRB Headquarters in Quezon City.

Gonzales said the 5 percent increase in fares translates to an adjustment from the current rate of P10 to P14 per kilometer to P11 to P15 per kilometer.

"In addition to that humhingi rin po kami for per minute naman ng 10 centavos increase per minute. So ang current na cap per minute is P2 so ang hihingin po namin is P2.10," he said.

He added that the base fare rate of P40 will remain.

As a result of higher excise tax rates, prices of liquefied petroleum gas (LPG) will go up by P1 per liter, diesel by P2.50 per liter, and gasoline by P2.65 per liter.

"[The] reason for doing this is our drivers need to be able to take home enough pay to make ends meet para sa livelihood po nila... with the implementation of the TRAIN law, the increase in the excise taxes on gasoline has an effect to TNVS (transport network vehicle services) so we will not ask this if not for the benefit of our drivers," Gonzales said.

"But we will not be increasing the fares unless there is a mark increase in the gasoline expenses," he said.

Gonzales expressed confidence that transport regulators will consider its petition since demand for its services have increased yet the fares have not yet been adjusted since 2016.

"We just feel that its fare and right para ma-increase ng konti ay sapat po. Sana makita po ng Board na sapat lang ang hinihingi po namin," he said.

Gonzales said that Grab hopes to set a hearing with the LTFRB regarding its petition on Wednesday next week and the fare increase be approved before the end of next week. —NB, GMA News