MANILA - Ride-hailing service Grab said Thursday it would appeal regulators' decision to suspend the additional P2 per kilometer that it was charging customers.

The additional charge is "legal" based on a 2015 Department of Transportation order that authorized transportation network companies or TNCs to "set their own fares," Grab said.

Removing the P2 component will force some drivers to move out of ride-sharing schemes, resulting in fewer cars, Grab said in a statement.

"This order sounds populist but is actually anti-people because it will hurt the drivers and the passengers more," said Grab country head for the Philippines Brian Cu.

Citing the 2015 DOTr order, Cu said Grab was not required to file a petition on fares or inform the Land Transportation Franchising and Regulatory Board about it.

"Even so, we still informed LTFRB during a technical working group meeting and in an official email," he said.

Grab became the dominant ride-sharing service in the Philippines after its Southeast Asian parent bought rival Uber's business in the region.