LTFRB moves surge pricing cap implementation to 20 December

The Land Transportation Franchising and Regulatory Board (LTFRB) on Wednesday granted the request of transport network companies (TNCs) to move the implementation of the surge pricing cap for ride-hailing services to 20 December.

The cap was originally scheduled to take effect on 17 December, but LTFRB Chairperson Atty. Vigor D. Mendoza II said the agency acknowledged the concerns raised by TNCs, which sought additional time to prepare their systems for the fare adjustment.

“We understand the concerns raised by the TNCs and on the part of the LTFRB. Madali din naman kaming kausap lalo na kung valid naman mga reasons na binigay,” Mendoza said.

He said the extension would allow TNCs to complete system-related preparations and properly inform drivers and other stakeholders.

“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, citing the recently issued Board Resolution that moved the implementation to December 20.

The LTFRB earlier issued Memorandum Circular No. 2025-056, which prescribes a reduction in the surge pricing cap for Transport Network Vehicle Service (TNVS) operations following complaints from passengers and commuter groups over what they described as unreasonable fare increases in recent years.

In a letter to the LTFRB, Grab Philippines said the brief adjustment in the implementation timeline was needed to allow proper consultation and cascading with its driver-partners.

The company said the consultations include issuing platform advisories and conducting orientations on the correct computation and application of the revised surge pricing parameters to ensure a smooth rollout.

“The requested adjustment in implementation is also necessary to provide TNCs adequate time for technology configuration. This period is required to complete the system programming refinements needed for the accurate, consistent, and fully compliant application of the revised surge pricing cap on the platform,” Grab Philippines said in its letter.

“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,” it added.

Mendoza clarified that the decision to move the implementation date should not be construed as a modification or repeal of the Memorandum Circular, which remains in effect until January 4 next year.

He added that 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.