LTFRB defers TNVS surge pricing cap
The Land Transportation Franchising and Regulatory Board (LTFRB) moved the implementation of the surge pricing limit for transport network vehicle services (TNVS) to Dec. 20 to give transport network companies (TNCs) more time to prepare for the fare adjustment.
The restriction was initially set for Dec. 17, but LTFRB Chair Vigor Mendoza II on Wednesday said that “we understand the concerns raised by the TNCs and on the part of the LTFRB. We are open to conversations especially if the reasons given are valid.”
“Additional time is necessary to complete the corresponding system configurations and operational adjustments to properly reflect the revised surge pricing cap, and to ensure adequate information dissemination to all affected drivers and other stakeholders on the combined effects of the said pricing adjustments,” the board said in a resolution.
The LTFRB disclosed that Grab Philippines had sent a letter requesting for a brief adjustment in the timeline of the implementation to allow for a “proper consultation and cascading with our driver-partners.”
The company added that the adjustment was necessary to provide TNCs with adequate time for technology configuration, stressing the need to “complete system programming refinements” for an “accurate, consistent and fully compliant application of the revised surge pricing cap on the platform.”
Until Jan. 4, 2026
In a memorandum circular signed by Mendoza on Friday, the LTFRB ordered a temporary reduction in surge pricing for TNVS or vehicles booked through ride-hailing apps, which will take effect until Jan. 4 next year.
The circular said surge pricing for TNVS vehicles shall be not more than the sum of the per-kilometer rate and per-minute travel time. TNCs are also not allowed to collect any share, commission or impose a service fee derived from the surge price component of the TNVS fare during that period.
Surge pricing will return to its original rate on Jan. 4 “unless the Board finishes its study on the matter,” the LTFRB said.
Mendoza said the decision to delay the price cap “shall not be construed as its modification or repeal of the agency decision on surge pricing cap until Jan. 4 next year.”
