THE Palace has acknowledged its inability to intervene in the upcoming fare increase for the LRT-1 train line, despite appeals from various groups urging President Ferdinand Marcos Jr. to halt the Department of Transportation’s (DoTr) decision. The new fare matrix is set to take effect on Wednesday, April 2, 2025.
Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro explained that the fare hike is mandated by the existing contract with the private operator, Light Rail Manila Corporation (LRMC). “We would like to, the administration would like to, stop this from happening, but the contract stipulates it. If I’m not mistaken, it was mentioned that the price should have increased a long time ago, but it was being held for the sake of our commuters,” Castro stated during a press briefing.
However, Castro also highlighted the potential consequences of not fulfilling the contractual obligation, warning that it could create even greater problems for commuters. The LRMC is set to implement an additional P10.00 fare increase starting on April 2nd.
Various groups have argued that President Marcos, as head of state, has the authority to overturn the DoTr’s decision. “The ball is now in the court of Bongbong Marcos and he can do the right thing by stopping the April 2 fare hike which will affect up to 370,000 commuters per day,” one report stated.
Among those appealing the fare hike are Bayan President Renato Reyes, Jr., and Makabayan senatorial candidates Jerome Adonis of KMU, Mody Floranda of PISTON, and Mimi Doringo of Kadamay, alongside Mhing Gomez of Anakbayan and Nanoy Rafael of the commuter group PARA.
The groups maintain that the fare hike is arbitrary, citing the lack of financial necessity presented in the petition. They point to the contract’s provision for a 10.25% fare increase every two years as the sole justification. Additionally, they criticize the DoTr’s failure to provide metrics for determining the new fare, which ranges from P5.00 to P10.00 depending on distance.
The appellants believe the current concession agreement between the government and LRMC is “grossly disadvantageous” to the public. “The private operator LRMC is guaranteed a fare hike every two years. If such is not granted by the government, it is the government that shoulder the fare deficit payment. The term of the contract is up to 2046, and by then, fares would have gone up by 160%,” according to one report.
The LRMC, however, maintains that the government owes the private operator over P3 billion in fare deficit payments.
