LRMC eyes new LRT-1 fare hike

The Light Rail Manila Corp. (LRMC) is studying the possibility of seeking another fare hike this year to keep Light Rail Transit Line 1 (LRT-1) fares on a par with other public transport units.

LRMC president and CEO Juan Alfonso told reporters last week that the concessionaire is considering the option of asking for a new round of fare adjustment in LRT-1.

Alfonso said that although the Department of Transportation (DOTr) allowed LRMC to increase LRT-1 fares in 2023, it has yet to recover previous losses from denied rate hikes in prior years.

LRMC requested the fare hike for LRT-1 in 2022, but gained approval to implement it only last year. Prior to this, the DOTr denied proposed adjustments in 2016, 2018 and 2020 and this forced LRMC to file an arbitration case to ask for at least P2.67 billion in compensation.

Apart from this, Alfonso said LRT-1 remains to be one of the cheapest forms of mass transport in Metro Manila. He noted that air-conditioned buses charge a minimum of P15 as compared to P13 in LRT-1 for stored value.

“We are calibrating with our team when the best time is (to file for a fare increase) because in our contracts we have a schedule and I think we are still behind overall,” Alfonso said.

“The fare hike last year was actually delayed (since) it was for 2022. We apply every two years. Obviously, we didn’t have one in the last eight years,” he added.

The latest rate hike elevated the boarding fare in LRT-1 and LRT-2 to a minimum of P13.29 and the distance fare by P0.21 per kilometer.

Under the concession agreement, LRMC is allowed to request a fare hike once every two years. The operator has to adjust LRT-1 fares to recover some of the investments it made in upgrading the railway, such as the ongoing extension to Cavite.

As of January, LRMC has completed 97 percent of the first phase of the LRT-1 Cavite Extension. The segment will add five stations to the LRT-1 – Redemptorist, MIA, Asia World, Ninoy Aquino and Dr. Santos – and is scheduled for opening in the fourth quarter.

Afterward, LRMC will construct two more segments for the extension, making the rail line go as far as Las Piñas City and Cavite.

Originally, the LRT-1 Cavite Extension was estimated to cost P64.92 billion, but LRMC spent an additional P4 billion to cover civil works delays during the pandemic.