LTFRB delays reduced ride-hailing surge fares to December 20

MANILA, Philippines — Ride-hailing companies have three days to adjust their fare computation systems ahead of the Land Transportation Franchising and Regulatory Board’s (LTFRB) implementation of a temporary reduced surge pricing cap during the holidays.

In a statement on Wednesday, December 17, the LTFRB granted the request of ride-hailing firms to defer the implementation of lower surge prices under the agency-imposed fare cap to December 20. The lowered fare surcharges are expected only until January 4, 2026. 

This came after the LTFRB issued Memorandum Circular 2025-056, which mandates Transportation Network Vehicle Service (TNVS) operators, including Grab, InDrive, JoyRide, Angkas and others, to implement adjusted surge pricing rates after passengers and commuter groups complained of "unreasonable fare increases."

During peak periods such as the December holidays, when roads are often gridlocked by heavy traffic, ride-hailing services typically impose surcharges on top of base fares.

Under the LTFRB’s new policy, surge pricing will be capped at the base fare plus standard cost components, rather than allowing fares to rise to as much as double the normal rate.

While surge pricing is originally intended to reflect changes in supply and demand, the LTFRB noted that there were no clear guidelines for its calculation. The initial TNVS fare matrix allowed surge fares to rise to as much as twice the base fare without standardized parameters.

The new memorandum, meanwhile, sets a guideline limiting surcharges to no more than the combined per-kilometer and per-minute charges of the TNVS vehicles on the road.

The LTFRB specifically received a request from Grab Philippines to postpone the implementation, allowing the company to conduct proper consultations with its driver-partners and brief them on the correct calculation and application of the revised surge pricing rules.

"This request is submitted solely for implementation readiness and system compliance purposes, and without prejudice to the full implementation of the Memorandum Circular upon the lapse of the requested adjustment period," Grab said.

LTFRB Chairperson Vigor Mendoza II said the agency acknowledges the need for ride-hailing companies to adapt to the new surge pricing cap.

"Additional time is necessary to complete the corresponding system configurations and operational adjustments to properly reflect the revised surge pricing cap, and to ensure adequate information dissemination to all affected drivers and other stakeholders on the combined effects of the said pricing adjustments," Mendoza said. 

Many Filipinos have been noticing the sharp increases in fares for short rides to work or nearby destinations, a surge typically triggered by rain and heavy traffic.

With the LTFRB’s new surge pricing cap not yet in effect, Filipinos will have to wait until December 20 to see if it fairly eases the fare burden on passengers.