LRT-1 operator seeks to increase train fares

Commuters using the Light Rail Transit Line 1 (LRT-1) are facing higher fares as its private operator, Light Rail Manila Corp. (LRMC), is seeking another round of fare hikes.

“We are confirming that we submitted a petition as part of the periodic fare adjustments process,” LRMC Spokesperson Jacqueline S. Gorospe said in a Viber message on Wednesday.

The Department of Transportation (DoTr) is set to hold a public hearing on the fare increase petition of LRMC on Jan. 9.

LRMC filed a petition for a fare increase before the DoTr’s railway regulatory unit on May 30, 2024. In 2023, the Transportation department approved petitions to increase ticket prices at the LRT-1 and LRT-2.

“Our current fare is approved in 2023. This public hearing is for the 2024 fare application (we submitted last year) which is based on an increase from 2022 fare application submission (different from what was approved in 2023),” Ms. Gorospe said.

The current base fare for the LRT-1 is PHP 13.29 for boarding and PHP 1.21 per kilometer for distance.

A copy of the petition obtained by BusinessWorld showed LRMC’s request would raise the total fare for an end-to-end trip on the LRT-1 to PHP 60 for a single-journey ticket. This is PHP 15 more than the current fare of PHP 45 from FPJ Station (formerly Roosevelt) in Quezon City to Baclaran Station in Pasay, including the last station of the Cavite extension Phase 1.

For users of stored value cards, the maximum fare would go up to PHP 58 from the current PHP 43 for end-to-end trips.

To justify the fare hike petition, LRMC said they have made substantial operational improvements and system upgrades “at a cost of PHP 24 billion” since it took over the LRT-1 in September 2015.

“While it is aware that an increase may be significant for some of its passengers, however, petitioner believes that passengers understand and accept fare increase in exchange for improvements in the system and service,” LRMC said.

In the petition, LRMC said the average fare increase would be PHP 7.48 for LRT-1 passengers who travel an average distance of 7.16 kilometers.

Mid-distance passengers that travel more than five kilometers to 16 kilometers would pay an average of PHP 6.02 more, while short-distance passengers would see their fares increase by PHP 8.65.

“An average increase of only PHP 12.50 for long-distance passengers, which are passengers that travel more than 16 kilometers on the existing system. Only 1.88% are long-distance passengers,” LRMC said.

Renato M. Reyes, Jr., secretary general of Bagong Alyansang Makabayan (Bayan), said they are opposing the proposed LRT fare hike, the second under the Marcos administration.

“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,” he said.

Transportation Assistant Secretary for railways Jorjette B. Aquino told BusinessWorld the DoTr will take into account the comments from the public before deciding on LRMC’s petition.

Ms. Aquino said the DoTr is expected to come up with a decision a month after the public hearing.

“As per the Rail Regulatory Unit Rules and Regulations, a maximum of 30 days from the day of public hearing. It is part of our job and commitment to do proper review and evaluation of their petition,” Ms. Aquino said.

Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said the DoTr must properly evaluate the fare adjustment petition filed by the LRMC.

“The DoTr must determine whether LRMC had already delivered on its prior commitments to build new infrastructure and adequately maintain the rail system,” Mr. Ridon said.

LRMC is the joint venture of Ayala Corp., Metro Pacific Light Rail Corp., and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. Metro Pacific Light Rail is a unit of Metro Pacific Investments Corp., which is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT Inc. and Philex Mining Corp.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains interest in BusinessWorld through the Philippine Star Group, which it controls. – Ashley Erika O. Jose, Reporter