LTFRB moves start of surge pricing cap for ride-hailing services to Dec. 20

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) has moved the implementation of the surge pricing cap for ride-hailing services to Dec. 20, 2025, granting a request from transport network companies (TNCs) for more time to prepare their systems. The rollout was originally set for Dec. 17. LTFRB Chairman Vigor D. Mendoza II said the agency considered the concerns raised by TNCs, which asked for additional time to adjust their fare systems and inform drivers and stakeholders. “We understand the concerns raised by the TNCs. Madali din naman kaming kausap lalo na kung valid naman ang mga reasons na binigay,” Mendoza said. He said that the extension would allow TNCs to complete system configurations and operational adjustments to reflect the revised surge pricing cap and to ensure proper information dissemination to affected drivers and stakeholders, as provided under a recently issued LTFRB board resolution. The surge pricing cap reduction is covered by Memorandum Circular 2025-056, which the LTFRB issued following complaints from passengers and commuter groups over what they described as unreasonable fare increases in ride-hailing services. Grab Philippines, in a letter to the LTFRB, said the brief adjustment in the implementation timeline was needed to allow consultations and proper cascading of information to its driver-partners. The company said this included platform advisories and orientations on the correct computation and application of the revised surge pricing parameters to ensure a smooth rollout. Grab also cited the need for additional time to complete technology configuration and system programming refinements to ensure accurate and compliant application of the new pricing cap. The company stressed that the request was solely for implementation readiness and would not affect full compliance once the adjusted period lapses. Mendoza clarified that moving the implementation date should not be construed as a modification or repeal of the memorandum circular. He said the LTFRB resolution directed TNCs to complete all necessary system programming, algorithm adjustments, and information dissemination to ensure full compliance once the surge pricing cap takes effect. The surge pricing cap reduction will remain in force until Jan. 4 next year, the LTFRB said.