LTFRB defers implementation of temporary TNVS surge price cap to Dec. 20

The Land Transportation Franchising and Regulatory Board (LTFRB) has deferred the implementation of the temporary reduction in surge pricing for transport network vehicle services (TNVS).

In a statement on Wednesday, the LTFRB said it granted the request of ride-hailing firms to move the start of the implementation of the surge pricing cap to Dec. 20, 2025, instead of its original start date of Wednesday, Dec. 17, 2025.

LTFRB chairperson Vigor Mendoza II said they understood the concerns raised by the Transport Network Companies (TNCs) in requesting the agency to give them more time to prepare for the fare adjustment in their system.

“Additional time is necessary to complete the corresponding system configurations and operational adjustments to properly reflect the revised surge pricing cap, and to ensure adequate information dissemination to all affected drivers and other stakeholders on the combined effects of the said pricing adjustments,” Mendoza said, citing the recently-issued board resolution that deferred the implementation to Dec. 20.

Earlier, the LTFRB issued Memorandum Circular No. 2025-056 which prescribed the reduction of the surge pricing cap for TNVS operations amid complaints from passengers and other commuters’ groups over “unreasonable” fare increases in ride-hailing services.

In its letter to the LTFRB, Grab Philippines said the request for brief adjustment of the implementation timeline is necessary to allow for proper consultation and cascading with its driver-partners. 

The consultation includes timely issuance of platform advisories and thorough orientation on the correct computation and application of the revised surge pricing parameters, which is essential for a smooth and consistent rollout.

“The requested adjustment in implementation is also necessary to provide Transport Network Companies (TNCs) adequate time for technology configuration. This period is required to complete the system programming refinements needed for the accurate, consistent, and fully compliant application of the revised surge pricing cap on the platform,” said Grab Philippines.

“This request is submitted solely for implementation readiness and system compliance purposes, and without prejudice to the full implementation of the Memorandum Circular upon the lapse of the requested adjustment period,” it added.

Mendoza said the decision to move the implementation of the memorandum circular to December 20 shall not be construed as its modification or repeal of the agency decision on surge pricing cap until Jan. 4, 2026.

Sample computation

Under its memorandum, the LTFRB set parameters on how the surge price should be computed. It stated that the surge pricing must not exceed the B+C TNVS Fare Matrix.

The B in the memo refers to the per kilometer per rate while the C refers to the per minute charge of the TNVS.

Currently, the hatchback and sub-compact has a flagdown rate of P35, sedan with P45, Asian utility vehicle with P55 and premium with P145 flagdown rate.

The per kilometer rate for hatchback and sub-compact is P13, sedan with P15, AUV with P18 and premium with P36 per kilometer charge.

All of them have a rate of P2 per minute travel time except for premium with P4.

In the new memo, the LTFRB set a sample computation in order to clear things up with both the passengers and TNVS.

If a car/sedan TNVS traveled five kilometers and the travel time is 10 minutes, passengers should pay P75 for the per kilometer rate and P20 for 10-minute travel time – for a total of P95, plus the flag down rate of P45.

Therefore, the LTFRB said the price surging must not exceed P95 for car/sedan TNVS since the basic computation in the MC 2025-056 should not exceed the B (per kilometer rate) +C (per minute travel time) in the TNVS Fare Matrix. — JMA, GMA Integrated News