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Marcos defers fare hike in LRT lines: transport dept

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Mark Demayo, ABS-CBN News/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/life/04/11/20221205-lrt1-christmas-train-md-4.jpg"/><figcaption>Commuters ride the LRT-1&#x27;s new Christmas Train featuring classic and retro-pop music-themed decals in Quezon City on Dec. 5, 2022. The rail line resumed their tradition of Christmas-themed trains after a hiatus in 2020. <em>Mark Demayo, ABS-CBN News/File</em></figcaption></figure></div><p>MANILA <strong>(UPDATE) </strong>— President Ferdinand Marcos, Jr. has ordered the Department of Transportation (DOTr) to postpone fare increases for LRT-1 and LRT-2 pending a thorough study, Transportation Secretary Jaime Bautista said on Tuesday.</p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2579135" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><p>In a press briefing, Bautista said the agency would &quot;thoroughly study how a fare hike today will impact on passengers.&quot; </p><p>Bautista said the fare hike for MRT-3 was also deferred &quot;due to infirmities in complying with the requirements and procedure.&quot;</p><p>&quot;The instruction of the President is to reassess the date of implementation for us to be able to determine the impact on inflation. Since inflation rate has also gone up in the last two months, we’ll have to review this and discuss this with NEDA. We will report to you when will be the implementation. But as far as the rate is concerned, it’s already approved… Siguro it will take a few months,&quot; Bautista said.</p><p>The DOTr&#x27;s Rail Regulatory Unit (RRU) earlier endorsed fare adjustments for LRT-1 and LRT-2, which Bautista said would have enabled the rail lines &quot;to improve their services, facilities and technical capabilities.&quot; </p><p>“We’re duty bound to improve the system and to run the system, so we’re doing that. We can’t afford to wait… We’ve been waiting for 6 years. It would be very hard, it would be very difficult. Everyone has gotten their fare increase. Yung iba kung hindi fare increase, nabigyan ng subsidy. It’s the option we’re waiting for if the government is not willing to allow the fare increase. Siguro yung subsidy, kasi yun naman din yung nasa kontrata namin. Yung fare deficit, yun sana ang bayaran,” said Atty. Jhimmy Santiago, general counsel of the Light Rail Manila Corporation.</p><p>The Light Rail Transit Authority (LRTA), which operates LRT-2, was supposed to allocate the earnings from the fare hike for its operating expenses.</p><p>&quot;Yung allocation ng fare increase supposedly, 97% of that will go to operating expenses namin kasama ang maintenance. Around 3% pupunta sa common carriers tax kasi inaassess kami ng tax as common carrier,” said LRTA Administrator Hernando Cabrera.</p><p>He said the LRTA is also seeking to modernize the rail line.</p><p>Cabrera confirmed the LRTA board of directors will again review the fare hike before approving it again for implementation, including the economic impact. The issue will again go through a public hearing, he said.</p><p>Among the LRTA board of directors are officials from the National Economic Development Authority, Department of Finance, and Department of Budget and Management.</p><p>The government last approved fare hikes LRT-2 and MRT-3 in 2015, the transportation department noted. </p><p>It added that LRT-1, which was privatized in 2015, filed 4 petitions for fare adjustments from 2016 to 2022, which were all deferred. </p><p>Once implemented, the minimum fare for both LRT-1 and LRT-2 will increase to P14 from P12, while the maximum fare for LRT-1 will increase to P35 from P29, and P33 from P28 for LRT-2.</p><p>These prices will be applicable for those using Beep cards.</p><p>For those using single journey ticket, the minimum fare will remain at P15 for both LRT-1 and LRT-2, while the maximum fare will increase to P35 from P30.</p><p>“The reasonableness of the fare rates being requested was likewise determined by being comparable with other modes of road transportation. When using the higher single journey ticket fare rates, at full LRT Line 2 trip length of 16.56 km, the P35 petition fare is comparable only to prevailing jeepney fare rates. While at an average of 8.5 km that a passenger of Line 2 takes, the P25 petition fare is comparable only to the prevailing air-conditioned bus fare. These observations are also true for LRT1,” explained Transportation Assistant Secretary Jorjette Aquino.</p><p>“LRTA’s deficit for the critical year 2023 is projected to be P8.5billion. It has been actually operating at a loss, and relying on government subsidies for its operations and maintenance as reflected in its financial performance in the critical year 2022, when it incurred a deficit of about P7.006 billion. On the part of LRMC, its fare deficit, vis-à-vis the notional fare prescribed in its concession agreement with government is P1.46 billion, wherein the actual fare is 50% behind the notional fares,” Aquino added.</p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2578422" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

President Marcos has ordered the DOTr to postpone fare increases for LRT-1 and LRT-2 pending a thorough study. 