LTFRB caps holiday surge rates to protect commuters

Ride-hailing fares are set for a temporary adjustment this Christmas season as the Land Transportation Franchising and Regulatory Board (LTFRB) moves to limit surge pricing during the year’s busiest travel period.

LTFRB Chair Vigor Mendoza II announced that the reduced surge cap will take effect from December 17, 2025 until January 4, 2026, following the directive of President Ferdinand Marcos Jr. and Transportation Secretary Giovanni Lopez to address mounting complaints over unpredictable TNVS fares.

“We heard the complaints, and we understand the frustrations. That’s why we acted quickly to craft clearer guidelines for TNVS fare computation,” Mendoza said.

While surge pricing was originally meant to encourage more drivers to go online during peak demand, the lack of detailed computation rules has fueled confusion and passenger grievances. The LTFRB noted that although Memorandum Circular (MC) 2019-036 limited surge charges to twice the base fare, it did not specify how the multiplier should be applied.

The new MC 2025-056 aims to balance commuter protection with fair driver compensation. Under the updated rules, surge pricing must not exceed the total of the per-kilometer and per-minute charges. As an example, a sedan traveling 5 kilometers in 10 minutes would generate ₱75 for distance and ₱20 for travel time. With a ₱45 flag down rate, the computed fare totals ₱95—meaning the surge amount cannot surpass ₱95.

Current TNVS base rates remain unchanged, with hatchbacks and sub-compacts beginning at ₱35, sedans at ₱45, AUVs at ₱55, and premium units at ₱145. The per-kilometer charges are ₱13, ₱15, ₱18, and ₱36, respectively, while the per-minute charges are ₱2 for regular units and ₱4 for premium units.

To ensure drivers benefit from the revised system, the LTFRB has barred transport network companies (TNCs) from taking any commission or service fee from the surge portion of fares during the memo’s implementation.

Both TNVS operators and TNCs have been ordered to reconfigure their fare algorithms by December 17, 2025 to comply with the new pricing framework—an effort aimed at ensuring fairer, more transparent fares at the height of the holiday rush.