House leader considers petitioning NLEX toll hike before Malacañang

The newly implemented toll increase for the North Luzon Expressway (NLEX) Corporation is set to be petitioned before Malacañang for allegedly unjust approval, which may lead to higher prices for basic goods and increased transportation costs.

Bulacan Rep. Augustina Dominique “Tina” Pancho, vice chair of the House Committee on Transportation, expressed concern that the toll hike warrants a thorough review, especially since it took effect without proper consultation with affected sectors, including the business community (merchants, truckers, and delivery services) who will be severely impacted by the new rates.

"We will appeal (to President Ferdinand Marcos Jr.) and perhaps if there is a franchise renewal, it should be carefully studied. You can't just implement an increase without considering all sectors,” she said in an interview.

“Don't just go after the money. Give consideration also to the favor of the people who pay,” she added.

The NLEX franchise was previously held by state-run Philippine National Construction Corporation, which held a 20 percent share until 2005. NLEX is now a subsidiary of the Manny Pangilinan-led Metro Pacific Tollways Corp., the toll road arm of Metro Pacific Investments Corp.

The new toll fee increase, which took effect on Sunday, March 2, raised rates for Class 1 (cars, motorcycles, and most personal vehicles) to P5, Class 2 (buses and trucks) to P13, and Class 3 (large trucks/vehicles) to P15.

This increase translates to P79 for Class 1 vehicles, P199 for Class 2, and P238 for Class 3 vehicles for the open system.

Pancho emphasized that the public will ultimately bear the burden of these additional costs, as the increase in toll rates, particularly for trucks and large vehicles carrying agricultural and essential goods, will lead to higher prices of products. Entrepreneurs are likely to pass these costs onto their customers.

“They should have given businessmen a chance to speak because the President wants to lower the price of agricultural products. How will you bring it down? That’s a domino effect. As an entrepreneur, you just apply [the toll hike] to your product,” she explained.

Echoing similar concerns, former Bayan Muna Rep. Ferdinand Gaite stressed that the toll hike directly impacts the livelihood of ordinary citizens already struggling with the rising cost of goods and services. This increase will lead to even higher prices.

“Basic commodities from Central and Northern Luzon will become more expensive in Metro Manila, while products from Manila will cost more in the provinces," Gaite explained.

With the increase, Pancho estimated that NLEX Corp.’s profit will reach P5.7 billion in just one year, excluding 30 percent in internal expenses, assuming daily entries remain at 287,628, the figure from 2022.

“If we’re going to base the current charge of P79, they will earn P22,722,612 a day, which, when multiplied by 12 months, totals P8,180,140,320 in a year,” she stated.

“Isn’t that enough income? You already have a huge profit and still impose a P79 toll fee. It’s very high. With the volume of vehicles coming in, I think they are already at quota,” Pancho concluded.

NLEX has justified the toll hike, stating that it’s necessary for improving its services and operations.

However, Pancho countered that the toll hike needs more scrutiny, as it does not seem to reflect an improved customer experience, citing issues such as traffic congestion and defective RFID (Radio Frequency Identification) systems, among others.