LTFRB allows Grab, TNCs to impose P2-per-minute travel charge

The Land Transportation Franchising and Regulatory Board (LTFRB) has allowed transport network companies to charge riders the controversial P2-per-minute travel fee as part of their fare structure.

JUST IN: LTFRB releases MC authorizing TNVS, including Grab, to impose P2/minute travel time charge. | via @Ted_Cordero pic.twitter.com/E2CsqRGKbc

— GMA News (@gmanews) September 5, 2018

In Memorandum Circular No. 2019-019, the LTFRB said a review of existing fare structure in the transport industry revealed a need to “rationalize and adjust the fare structure for TNVS (transport network vehicle services) in order to maintain its viability.”

“The Board hereby authorizes transport network vehicle service to charge P2 per minute of travel time from origin to destination as part of its fare structure ..."

LTFRB Board Member Aileen Lizada told GMA News Online the memorandum circular was signed on Tuesday, September 4.

It will take effect 15 days after publication in a newspaper of general circulation.

Allowing transport network companies to charge P2 per minute of travel time is subject to the following conditions:

• The P2-per-minute charge applies to all types of TNVS vehicles whether Sedan, AUV/6 seater, SUV, and sub-compact/hatchback

• Electronic receipts issued by TNCs will be unbundled to reflect the breakdown of the fare; including flag down rate, per kilometer rate, travel time rate, and surge price

In April, the LTFRB ordered Grab Philippines to stop charging P2 per minute of travel time on the heels of PBA party-list Representative Jericho Nograles’ claim that it was part of “illegal” charges of the transport network company. 

The travel time charge compelled the board to impose a fine of P10 million against Grab and order the company to reimburse its riders who paid travel charge.

On Tuesday, the LTFRB partially granted Grab’s appeal and reversed its order to reimburse riders who paid travel charge from June 5, 2017 to April 19, 2018.

However, the regulator maintained that the transport network company must pay the P10 million in penalties.

In its memorandum, the LTFRB clarified that allowing transport network companies to charge P2 per minute is without prejudice to the pending cases against Grab and Hype.

Earlier on Wednesday, Grab said it will exhaust all administrative and legal means to reverse the P10-million fine. —VDS, GMA News