December 17, 2025Dec 17 File photo for reference only The Land Transportation Franchising and Regulatory Board (LTFRB) has granted ride-hailing companies a three-day extension to adjust their fare computation systems, deferring the implementation of a reduced surge pricing cap to December 20. This temporary measure, which will remain in place until January 4, 2026, aims to address commuter complaints about unreasonably high fares during the holiday season. Under the new guidelines, surge pricing will be limited to the base fare plus standard cost components, preventing fares from doubling the normal rate. The decision followed the issuance of Memorandum Circular 2025-056, mandating adjustments to surge pricing rates. Originally, ride-hailing platforms such as Grab, InDrive, JoyRide, and Angkas could increase fares significantly during peak periods due to high demand and heavy traffic. The LTFRB recognized the lack of clear guidelines in the initial fare matrix, which allowed surge fares to double. The update introduces a cap to ensure surcharges do not exceed combined per-kilometer and per-minute charges. Grab Philippines requested a delay to conduct consultations and brief driver-partners on the revised pricing rules. They stated this request was for system compliance and implementation readiness. LTFRB Chairperson Vigor Mendoza II acknowledged the need for additional time to configure systems and inform stakeholders about the new surge pricing cap’s implications. Filipino commuters, who have experienced considerable fare hikes during poor weather or traffic, anticipate the December 20 change. The hope is that the new policy will alleviate the financial burden on passengers. The LTFRB's measures aim to create a fairer system, but the full effects will only be observed after the temporary cap takes effect, reported PhilStar. Key Takeaways LTFRB delays surge pricing cap for ride-hailing to December 20. New cap limits surcharges to prevent fare doubling during peak times. Ride-hailing companies adjust systems; commuter relief expected. Click here for more Philippines stories Adapted by ASEAN Now from PhilStar 2025-12-17
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