Grab Philippines wants 6-10% fare increase

Grab Philippines is filing a petition for an increase of as much as 10 percent in fare rates before higher pump prices of fuel products kick in as a result of the government’s tax reform program.

The company plans to file its petition with the Land Transportation Franchising and Regulatory Board (LTFRB) this week in light of the Tax Reform for Acceleration and Inclusion (TRAIN) bill that President Rodrigo Duterte signed into law last month.

“We will file a petition with the LTFRB to request for a fare change anywhere between 6 to 10 percent of current fares,” Grab Philippines country manager Brian Cu said in a press conference in Makati City on Wednesday.

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.

Based on the average fares in December, Cu expects an increase of P11 to P13 per trip once the petition is approved.

“The way we’re basing this on is the net income of our partner operators should be net neutral from before this excise tax and after this excise tax,” Cu noted.

Latest data available from the company showed that a full-time Grab driver consumes 20 to 22 liters of gasoline daily, or P900 to P1,100.

Cu emphasized the new Grab fare rates—once approved—would be applied only when the new tax reform law starts to impact on prices of petroleum products.

“We will not increase it until we see a significant increase in pump prices. And, again, that’s in the spirit of fairness,” he said. — VDS, GMA News