Daily commuters on the LRT and MRT lines heaved a sigh of relief last week when President Marcos ordered a deferment of proposed fare increases “pending a thorough study on (its) economic impact.”
The last approved fare increase for the LRT-2 and MRT-3 lines was in 2015. The LRT-1 operator, Light Rail Manila Corporation, filed petitions for fare increases – in accordance with its contract with the government – in 2016, 2018, 2020 and 2022, but all such petitions were similarly deferred.
Proceeds of the fare adjustments would be used to upgrade the technical capability, services and facilities of the two rail lines. Among the priority items is the restoration of four railsets that have been sidelined, as well as the upgrading of the train propulsion system for seven trainsets. These two major maintenance projects are estimated to cost ₱857 million and ₱700 million, respectively. Meantime, it has been reported that other less costly projects have been funded from operations, including the comprehensive maintenance of the conveyance system as well and the learning and development programs for employees.
It is understandable that less than a year after its inauguration, the Marcos administration is treading lightly on measures likely to hurt the pocket of the common tao. The minimum wage in Metro Manila at ₱570, the highest regional minimum wage in the country, is only 49.1 percent of the ₱1,161 family living wage in the region as of January 2023, as determined by the think tank IBON Foundation. The LRT-MRT is the cheapest form of mass transportation, as its fares have not been increased since 2015.
Meantime, the Supreme Court (SC) has upheld the right of the government to implement LRT-MRT fare increases. It ruled against the Bagong Alyansang Makabayan (BAYAN) petition challenging the former Department of Transportation and Communication’s previous order mandating the implementation of the user-pays principle, and adopting a uniform base fare of ₱11, plus ₱1 per kilometer of distance traveled.
According to the SC, there was “substantial compliance” with the due notice and hearing requirements, as these were announced in two newspapers. Subsequently, public consultations were conducted. The High Court also ruled that it is a well-established principle in jurisprudence that the rate-fixing power of administrative agencies is a valid delegation of legislative power. The SC determined that the agency’s power to fix rates have been delegated by Congress in the Administrative Code of 1987.
But even as the legal issues on rate-fixing and rate increases have been resolved in its favor, the government has opted to defer LRT-MRT fare increases in order to spare those at the proverbial bottom-of-the-pyramid from having to carry additional burdens.
Government must intensify its efforts to broaden the options for achieving economic self-sufficiency through creation of higher-paying jobs, as well as micro- and small-scale entrepreneurial development. Equally important is the need to maintain a high level of LRT-MRT services which could not be assured if needed maintenance and equipment upgrades are continually deferred.
