LTFRB issues circular imposing cut, changes in surge pricing for TNVS

[Updated Dec. 12, 2025, 6:05 p.m.]

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a memorandum circular imposing a temporary adjustment and reduction in surge pricing for Transport Network Vehicle Services (TNVS).

The LTFRB confirmed this to INQUIRER through a Viber message on Friday.

READ: TNVS drivers warned vs ‘unjustified’ cancellations

Based on the memorandum circular No. 56, signed by LTFRB chair Vigor Mendoza on Friday, by the board, the surge price cap for the TNVS vehicles shall be limited to 1x, signifying that the maximum allowable surge pricing for all TNVS trips shall not be more than the summation of the per kilometer rate and per minute travel time.

This directive will take effect from December 17, 2025 to January 4, 2026. 

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The LTFRB said the structure of the TNVS fare shall be as follows:

After the temporary adjustment order ends on January 4, the “surge pricing will return to its original rate unless the Board finishes its study on the matter.”

“The Transport Network Companies shall not collect any share, commission, or impose a service fee derived from the surge price component of the TNVS fare during the implementation of this Memorandum Circular,” the LTFRB said.

Compliance report, penalties

The memo also said all accredited Transport Network Companies shall submit to the LTFRB, through the Office of the Chairperson and Franchise Planning and Monitoring Division, a compliance report containing the following on or before December 17:

• Full details or description of their old fare computation and surge pricing algorithms
• Full details or description of the changes affecting the new surge pricing cap made to their new fare computation and surge pricing algorithms
• User interface samples and details showing how the new capped fares are reflected in the passenger and driver applications.

The LTFRB said all of the Transport Network Companies that will “willfully or repeatedly” charge fares exceeding the temporary surge pricing cap, or attempt to bypass the cap through indirect fees or similar charges, shall be subject to applicable administrative penalties under existing laws, rules, and regulations, including but not limited to the following:

• Suspension and/or Cancellation of company accreditation
• Imposition of fines under relevant issuances of the Board
• Such other sanctions as may be warranted by the circumstances.

“Failure to submit the compliance report required under Section VI above, the accredited Transport Network Companies are prohibited from imposing any surge price during the effectivity of this Memorandum Circular,” the LTFRB said.

The memorandum follows the LTFRB’s report of an increasing volume of reports and complaints from commuters regarding high TNVS fares, particularly during peak hours, weather disturbances, and other high-demand periods over the past weeks. 

The LTFRB noted that “there is a need to review and recalibrate the TNVS fare structure, including the existing surge pricing parameters, to ensure consistency with the principles laid down in applicable laws, rules, and jurisprudence on ‘just and reasonable’ fares and to avoid undue delegation of fare-setting powers to private platforms through non-transparent algorithms. /apl /mr