Leading corporate executives expressed support for the fare increase in Light Rail Transit Line 1 (LRT-1), reasoning that it is within the operator’s contract with government.
The Management Association of the Philippines (MAP), which comprises the country’s tycoons and business leaders, said it “stands for the sanctity of contract and the rule of law.”
“MAP favors the approval of the LRT-1 fare adjustment, pursuant to the contract between the government and the operator,” according to a MAP statement.
The minimum fare for single-journey tickets is now ₱20, from ₱15 previously.
Passengers taking the end-to-end journey, from Fernando Poe Jr. station in Quezon City to Dr. Santos station in Parañaque City, will pay ₱55 for a single-journey ticket instead of ₱45.
Meanwhile, those using stored-value cards will pay ₱52, up from the previous ₱43.
The fare formula for LRT-1 was adjusted to a ₱16.25 boarding fee and a ₱1.47 increment per kilometer (km) of travel.
LRT-1 private operator Light Rail Manila Corp. (LRMC) said earlier that this fare hike is only the second rate increase since it took over operations of the rail line in 2015.
This is contrary to the stipulations of the concession agreement, which stated that LRMC is entitled to fare hikes of 10.25% every two years, aligning with the annual five-percent rate adjustment that was initially due in 2016.
Since 2016, LRMC has filed petitions for fare adjustments in 2018, 2020, and 2022. All of them were deferred.
“The agreed terms of the contract on the fare adjustment must be complied with by the government in order to protect the level of service required of the operator and prevent deterioration of service to the commuters,” MAP said.
MAP noted that the contractually guaranteed fare adjustment was not approved by the Department of Transportation (DOTr) even after Phase 1 of the LRT-1 Cavite extension opened last year.
“Additionally, the train extension will soon reach Zapote and Bacoor in Cavite,” it added, referring to the extension’s phases two and three.
MAP’s statement came a day after DOTr defended the fare hike amid calls from various transport groups to overturn it.
For the DOTr, the increase “is long overdue and is necessary to ensure the operational viability of the rail line and sustain its necessary upgrades for the benefit of the commuting public.”
Transport and commute groups criticized the new fees for imposing another burden on daily commuters, especially students and laborers.
MAP maintained that it frequently “stands with the commuters” given its long-running advocacy of improving public transportation.
The association successfully urged government to introduce the EDSA Carousel busway to help decongest the country’s main thoroughfare.
Early this year, when it was reported that there are plans to scrap the busway, MAP expressed its strong opposition, noting that this is “ill-advised.”