Grab, citing higher fuel prices from tax law, seeks fare hike before LTFRB

January 5, 2018

Grab Philippines on Friday filed a petition for fare increase before the Land Transportation Franchising and Regulatory Board (LTFRB), citing higher fuel prices from the Tax Reform For Acceleration and Inclusion (TRAIN) Law

In a six-page petition, Grab is seeking an increase in its fares from a rate of P10 to 14 per kilometer to a new rate of P11 to P15 per kilometer in addition to the base rate of P40. It is seeking to increase its per minute charge to P2.10 from the current  P2.

LTFRB board member and spokesperson Aileen Lizada said they will set a schedule for hearing on Grab's petition.

Uber, Grab's competitor, has not sought an increase yet. But a few days ago, Bong Suntay, head of the taxi drivers association, said they are proposing a P50 flag down rate from the present P40.

“The increase in fare would ensure that the current technology would  continue giving the riding public the capability of selecting the kind of vehicle desired, the time of pickup and the  exact location of pick up and drop off,” Grab said.

“In addition, this requested increase would guarantee the riding  public the security of real-time GPS (Global Positioning System) tracking, transparent pricing and the comfort of riding in a new, clean and safe vehicle,” it added.

Grab is also requesting for an increase  of 6.39 percent for its premium drivers, from P16 to P23 per kilometer  to P18 to P25 per kilometer in addition to the base rate of P70 and an additional 25 centavos per minute charge over the cap of P2.50 per minute.

Grab said the tax reform law would increase excise tax for every liter of gasoline to P7 from the current rate of 4.35.

Grab said it would give a daily additional cost of P81 for a full-time Grab driver with an average of 12 trips a day, including monthly car maintenance which is expected to go up by 10 percent to P4,400.

Grab spokesperson Leo Gonzales said they  have 60,000 to 70,000 drivers in their fleet. DMS