GRAB files fare-hike petition with LTFRB, citing excise taxes under TRAIN law

January 6, 2018 - 10:32 AM
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MANILA – Ridesharing firm Grab has petitioned the Land Transportation Franchising and Regulatory Board (LTFRB) for a fare increase to mitigate the impact of higher excise taxes on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

Grab asked that its fares be increased from a rate of PHP10 to PHP14 per kilometer in addition to the base rate of PHP40 to PHP11 – PHP15 and PHP2.10 from the current PHP2 per minute rate.

“The increase in fare would ensure that the current technology would continue giving the riding public the capability of selecting the kind of vehicle desired, the time of pick up and the exact location of pick up and drop off. In addition, this requested increase would guarantee the riding public the security of real time GPS tracking, transparent pricing and the comfort of riding in a new, clean, and safe vehicle,” its petition read.

Under the TRAIN law, an initial excise tax of PHP2.50 per liter shall be imposed on diesel this year, which will eventually increase to PHP6 by 2020.

An excise tax of PHP7 will be imposed on gasoline in 2018, gradually increasing to PHP10 in 2020.

The Department of Energy (DOE) and Department of Trade and Industry (DTI) have advised oil companies not to apply the new excise taxes on old stocks of petroleum products, as these are levied on importation and not at the point of sale to consumers.