IBON Foundation: Proposed LRT, MRT fare hike will aggravate inflation burden
If the price of services and goods is already high now, it may be raised even more if transport inflation is discussed in the coming months, said the economic think tank IBON Foundation.
The public hearings on the increase in fares on the LRT-1, LRT-2 and MRT-3 are now underway, something that the petitioners say is timely due to the “fare deficit,” the increase in the price of electricity and the funding of more projects.
“Proposed fare hikes for the MRT-3 and LRT-1 and 2 will further burden millions of Filipinos that are already struggling with low wages amid soaring prices of basic goods and services,” the IBON Foundation said in a Facebook post on Friday, February 17.
“If approved, MRT-3 fares will increase by as much as 30.8% and the LRT lines 1 and 2 by as much as 16.7%.”
If the fare hike is implemented, the single journey ticket from North Ave. to Taft will increase to P34 from the current P28., while a round trip will increase to P68 from P56 now.
The country’s inflation rate soared to 8.7% in January 2023, the fastest increase in the price of goods and services in more than 14 years.
The LRTA first said that the government currently subsidizes 51% of the cost for passengers (break even fare), something they still want to lower to 46%.
Groups such as Bagong Alyansang Makabayan are opposing the proposal because they say there is no order from the Congress, the Palace, the Department of Budget and Management and the Department of Finance to reduce the subsidy by raising the fare.
In addition, President Ferdinand “Bongbong” Marcos Jr. has also approved the funding for subsidy of the government-run LRT-2, privately-operated LRT-1 and privately owned MRT-3.
