The Department of Transportation (DOTr) has approved a fare hike for the Light Rail Manila Corp. (LRMC), which will take effect on 2 April 2025. The decision, made official in a 14 February letter, comes after the LRMC petitioned for an increase in fares, citing adjustments in its concession agreement.
Under the new fare structure, the boarding fee will rise to P16.25, and the distance fare will increase to P1.47 per kilometer. As a result, passengers using stored value cards for an end-to-end journey will pay P52, up from the previous P43, while single journey tickets will cost P55, up from P45.
The approved fare hike, though significant, falls below the initial LRMC petition for an P18.15 boarding fee and a P1.65 per kilometer distance fare—reflecting a 10.25 percent increase from current rates. The petition aimed for higher adjustments to align with the contract stipulation that the operator be entitled to fare hikes of 10.25 percent every two years, in line with an annual 5 percent rate adjustment that was first due in August 2016.
This move has wider economic implications, as the cost of public transportation plays a key role in shaping household budgets and overall economic activity, particularly in urban areas where commuting is integral to daily life. The fare increase, while necessary to align with LRMC’s contractual rights, could add pressure to the cost of living, especially for lower-income commuters who rely heavily on the LRT services.
The fare hike is expected to generate additional revenue for the private operator, but it also places further burdens on commuters, who are already grappling with inflation and rising costs of living. The approval highlights the balancing act that the government must maintain between supporting infrastructure development and ensuring the affordability of public services.
The DOTr’s decision underscores its ongoing commitment to adhering to established concession agreements, while the relatively moderate hike compared to the original request signals a cautious approach to addressing the economic challenges facing everyday commuters.
Since its inception, the LRMC has sought a fare hike several times, primarily in accordance with its concession agreement with the government. The agreement allows LRMC to request a fare adjustment every two years, with an effective increase of 10.25 percent per adjustment (based on a 5 percent annual rate).
For example, in August 2016 the LRMC requested a fare rate increase.
The LRMC operates LRT- 1 that runs from Roosevelt Avenue to Baclaran originally but recently extended by five more stations beginning with the Redemptorist Station, Aseana Station, MIA Road Station, PITX Station, Ninoy Aquino Avenue Station and Dr. Santos Station.
