Background and Basis of Petition
- PNTOA is a non-stock, non-profit corporation with nationwide taxi operator members
- Last fare increase was in 2004 when the flag down rate was raised from Php25.00 to Php30.00
- Operating costs have increased significantly since last fare adjustment including fuel, spare parts, labor, and cost of living
Notice and Oppositions
- Notice of hearing served to petitioners and Office of Solicitor General, published publicly
- Opposition filed by Pasaherong Sa Mga Sasakyang Pampubliko Sa Pilipinas, Inc. (aPSPP) citing exploitative driver boundaries
- Individual opposition filed citing procedural defect on publication
Evidence Presented
- Significant rise in cost of fuel (gasoline and LPG) since last fare increase
- Inflation and essential vehicle component costs increased by approximately 30-40%
- Rising cost of living affecting both operators and drivers
- Operating costs in provinces 20-30% higher than in Metro Manila
- Philippines taxi fares are among the lowest in the world
Operators’ and Drivers’ Challenges
- Reduced income for drivers due to high costs and boundary system operation
- Some drivers resort to illegal activities like meter tampering and contract fares
- Slowdown in taxi operations; operating capacity less than 60%
- Artificial shortage of taxis affecting public availability
Board’s Observations and Considerations
- Last fare increase was over 6 years prior
- Fuel prices have nearly doubled; spare parts and labor costs increased significantly
- Minimum wage increases point to higher living costs
- Government must balance public interests with operators’ need for reasonable returns and drivers’ fair earnings
Decision on Fare Increase
- Approved fare increase to Php40.00 flag down for first 500 meters
- Succeeding meter rate increased to Php3.50 per 300 meters or 2 min waiting time
Conditions and Requirements for Operators
- All franchised operators deemed applicants and required to pay filing fees Php510.00 each
- Taxis must have taxi meters with receipts or printer capable of issuing receipts
- Taxi meters must be tested, resealed by LTFRB authorized personnel with a Php500.00 testing fee
- No implementation of fare increase allowed until meter resealing completed
Obligations and Conduct of Taxi Drivers
- Mandatory wearing of company uniforms and proper grooming; prohibited attire specified
- Prohibition on operating defective meters
- Ban on contracting passengers or overcharging
- Prohibition of refusing passengers or asking destination before boarding
- Drivers must provide exact change, no rounding-off; no candies or gums as change
- Receipts must always be issued, even without passengers’ request
- Failure to comply results in a penalty of Php2,500 per offense
Geographic Scope and Effectivity
- Decision applies to Metro Manila and provincial taxi operators
- Does not apply to Baguio City (separate petition pending)
- Effective 15 days after publication or deposit of copies with U.P. Law Center
Dissent and Formalities
- Board Member Manuel M. Iway inhibited himself due to conflict of interest
- Decision adopted on December 23, 2010, signed by Chairman and Board Member
- Attested by LTFRB Executive Director