DOTr: LTFRB will set TNC fare rates

The Land Transportation Franchising and Regulatory Board (LTFRB) has been authorized to set the fare rates being charged by transport network companies (TNCs) like Grab and Micab.

A department order (DO) signed by Transportation Secretary Arthur Tugade on Monday gave the LTFRB the power to regulate and supervise TNCs and the Transport Network Vehicle Service (TNVS) units under them.

Section 6 of the new DO, a copy of which was obtained by the Inquirer, stated that “the fare for the TNVS shall be determined by the LTFRB after a public hearing or in consultation with the TNCs and TNVS.”

Oversight function

Under DO 2015-11 signed by former Transport Secretary Joseph Abaya, TNVS fare rates were set by TNCs themselves with the LTFRB given oversight function.

Following the issuance of the new department order, LTFRB board member Aileen Lizada said the agency would conduct a check of the fees currently implemented by TNCs.

“This new DO will allow us to properly regulate TNCs and their TNVS units and, most importantly, protect the rights of commuters,” said Goddes Libiran, DoTr communications director.

In a statement, Grab Philippines country head Brian Cu said that although they have yet to get a copy of the DO, they would comply with it.