GRAB Philippines (MyTAXI.PH, Inc.) has filed a petition for a 5% fare increase in response to the increase in excise taxes for fuel, among others, under the new tax reform program.

The ride-sharing company filed on Friday, Jan. 5, with the Land Transportation Franchising and Regulatory Board (LTFRB) a petition to increase its P10 to P14 per kilometer charge to P11 to P15 per kilometer, and increase its P2 per minute charge to P2.10 per minute, to compensate Grab drivers for impending price increases in fuel and spare parts from higher excise taxes.

“The content is 10 centavos increase per minute so the current cap on per minute is P2, so we’re asking P2.10. The current cap per kilometer is P10-P14, we’re asking for P11-P15 per kilometer. It’s only small, but the reason for doing this is because our drivers need to be able to take home enough pay for their livelihoods, with the TRAIN [Tax Reform for Acceleration and Inclusion] law and the implementation of the TRAIN law,” Grab Philippines communications head Leo Emmanuel Gonzales told reporters after the filing of the petition.

Mr. Gonzales said fares have not been adjusted since the imposition in December 2016 of fare caps on transport network companies (TNCs) by the LTFRB, while prices of commodities and demand for Grab services have increased.

“Since December 2016, the first time LTFRB put a cap on our fares, demand has increased as of December by 30%, just this December… You can imagine the increase of demand, and yet the fares have not yet been adjusted. Prices of commodities have also increased. We just feel that it’s just fair and right, this petition to slightly increase the fares. We hope through our petition the Board can see that what we’re asking is just right,” Mr. Gonzales told reporters.

On Wednesday, Grab Philippines country head Brian P. Cu announced the company’s plan to file a petition for a fare increase. Mr. Cu said that a full-time Grab driver spends between P800 to P1,100 on fuel a day. With the new tax reform law, he said a driver faces a 5% rise in gas expenses and about a 2-3% increase in spare parts costs.

Excise taxes are estimated to increase by P2.50 per liter for diesel, and P7 per liter for gasoline.

A spokesperson for ride-sharing company Uber Philippines (Uber Systems, Inc.) said that the company currently has no plans to increase fares.

“No plans at this time. But we will monitor impact on driver earnings,” Catherine Avelino, head of communications for Uber, said in a text message. — Patrizia Paola C. Marcelo

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