Grab files petition for 5% fare hike

Rambo Talabong
Grab files petition for 5% fare hike
In its fare hike petition before the LTFRB, Grab cites the increased cost of vehicle maintenance and higher fuel prices with the imposition of a new tax reform law

MANILA, Philippines – Ride-hailing company Grab on Friday, January 5, asked the Land Transportation Franchising and Regulatory Board (LTFRB) for a 5% fare increase, citing the impact of the new tax reform law on its operations.

In a petition before the LTFRB filed on Friday, Grab sought the following:

  • Increase its P10 to P14 per kilometer charge to P11 to P15 per kilometer
  • Increase its P2 per minute charge to P2.10 per minute 

FILED. Leo Gonzales, Grab Philippines Public Affairs Office Head, show a copy of a petition for fare hike he filed at the LTFRB on Friday. Photo by Darren Langit/Rappler

This comes on the heels of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which took effect on January 1. The law brings down income tax rates, but which increases excise taxes on petroleum, cars, and vehicle spare parts.

Grab said the new tax law would mean higher expenses for Grab drivers, which would require a fare increase in the company’s fare rates.

“We looked into the cost of maintaining a vehicle, we looked at the lifespan of the vehicle, we looked at the price of petroleum products. Those are the bases that we used to determine the amount of increase per trip,” said Grab spokesperson Leo Gonzales, upon filing the petition.

Grab is waiting for the LTFRB to schedule a hearing on its petition. – Rappler.com

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Rambo Talabong

Rambo Talabong covers the House of Representatives and local governments for Rappler. Prior to this, he covered security and crime. He was named Jaime V. Ongpin Fellow in 2019 for his reporting on President Rodrigo Duterte’s war on drugs. In 2021, he was selected as a journalism fellow by the Fellowships at Auschwitz for the Study of Professional Ethics.