Light Rail Transit depot employees make preparations before the start of the program for the inauguration of the new LRT - 1 4th Generation Light Rail Vehicles (LRVs) at the LRT Baclaran Depot in Pasay City on July 19, 2023. Jonathan Cellona, ABS-CBN News 

MANILA -- The Department of Transportation (DOTr) held the first public hearing on the LRT 1 fare hike petition of the rail line’s operator Light Rail Manila Corporation (LRMC).

LRMC wants to increase the fare from the current P13.29 boarding fee plus P1.21 per kilometer to P18.15 boarding fee plus P1.65 per kilometer. This means an additional fare of up to P15 for a one-way end-to-end journey. 

In its petition, LRMC said the average passenger would pay an additional P7.48.

LRT-1 runs from the FPJ Station in Quezon City to Dr. Santos Station in Sucat, Paranaque. It also passes through mostly key areas of Manila City, Caloocan, and Pasay.

LRMC President and Chief Executive Officer Enrico Benipayo said there is a need to increase fares due to higher operating costs now particularly electricity. He said LRMC has invested P45 billion since it became the private operator nine years ago.

“We committed to infuse capital, improve the system, build the Cavite extension, and in return of course, it’s either a fare increase or if the fare increase is not granted, then the government will support or pay,” he said.

Benipayo said it has upgraded LRT 1 by replacing the entire rail, improving the stations, adding more trains, and even added CCTVs and escalators and elevators in some stations. 

He said one loop time before they took over was 106 minutes, but now, it’s down to 91 mins. Headway interval or the time between trains is now 2 and half minutes down from the previous 5 minutes.

He added that fare deficit has now reached P2.17 billion. Benipayo said this is an obligation of the government, as stipulated in the contract if the fare is only below what is written in the agreement. 

If the fare hike is not approved, fare deficit is expected to reach P7 billion in three years, he said.

“We really need the support of the government, either through fare increase and payment of the fare deficit or a combination,” Benipayo said.

Several groups are opposing the fare hike. Representatives from Bayan Muna, Kilusang Mayo Uno, Kadamay and some commuter groups attended the hearing, where they said this hike should be stopped because it will be a burden to ordinary commuters who are already facing hikes in SSS contributions, electricity, and fuel.

DOTr said it will review the petition and may release the decisison within thirty days. 

“We also consider yung affordability, inflation, yung price indexes,” said DOTr Assistant Secretary for Railways Jorjette Aquino.

Transportation Secretary Jaime Bautista said he believes that a fare increase in the LRT-1 is already due, noting that government has not acted on the earlier fare hike petitions of the LRMC in previous years.

Bautista noted that the LRMC filed fare increase petitions in 2018, 2020, 2022, and 2024, but government did not act on these.

“Under the concession agreement ay may karapatan ang private sector na magtaas ng pamasahe almost every two years subject sa approval ng (Light Rail Transit Authority) at DOTr," he said

“It was only last year na nagkaroon sila ng first increase. At under the concession agreement na dapat naman irespect ng gobyerno, ay dapat payagan din natin sila na magkaroon ng increases, dahil tumataas din naman ang kanilang cost of operations," he explained.

LRT-1, LRT-2 fare hikes take effect

Should the DOTR approve the LRMC’s petition, the fare hike will likely be implemented by April this year, he said.