LTFRB enforces temporary surge price limit on ride-hailing services for the holiday season
The Land Transportation Franchising and Regulatory Board has temporarily capped surge pricing for ride-hailing services during rush hour and holidays.
Chairperson Atty. Vigor D. Mendoza II detailed the LTFRB’s swift response, noting the Board "immediately acted" to address issues raised by the Transport Network Vehicle Services sector.
Mendoza explained: “We heard the complaints and we also feel the sentiments raised by those in the TNVS sector that is why we immediately acted on this in response to the instruction of President Marcos and Secretary Lopez to come up with the guideline on the computation of TNVS fares,”
The price adjustment will cover the period of Dec. 17 to Jan. 4, 2026.
Surge pricing computation
Surge pricing was originally designed as a bonus meant to convince more ride-hailing drivers to get on the road when demand is high. This helps make sure a car is always available for commuters.
While the old rules under the LTFRB Memorandum Circular 2019-036 memo capped the surge price, (no more than twice the base fare), there was no specific step-by-step guideline or formula for the companies to use when calculating the actual surge price.
The new LTFRB memo, MC 2025-056, addresses this problem directly, benefitting both passengers and TNVS drivers.
According to the LTFRB, the surge pricing must not exceed the B+C TNVS Fare Matrix. ('B' refers to the per kilometer per rate, while the 'C' refers to per minute charge of the TNVS.)
Currently, the standard flagdown rate is P35 for hatchback/sub-compact, P45 for sedan, P55 for AUV, and P145 for premium vehicles. The corresponding per-kilometer rates are P13, P15, P18, and P36, respectively.
Additionally, all vehicle types incur a P2 per minute charge for travel time, with the exception of premium vehicles, which are charged P4 per minute.
The new memo said that Transport Network Companies must not deduct any share from the surge price, ensuring TNVS drivers are able to fully maximize their earnings during high-demand periods.
“The TNCs shall not collect any share, commission, or impose a service fee derived from the surge price component of the TNVS fare during the implementation of this Memorandum Circular,” it read.
All fare-computation algorithms must be fully reconfigured and implemented no later than Dec. 17 of this year.
Moving forward, the LTFRB said it will continue its study of surge pricing, reviewing existing rules, regulations, and relevant jurisprudence related to the TNVS fare matrix.
The LTFRB also issued a memorandum circular penalizing ride-hailing app drivers for canceling bookings during the holiday rush.
In the LTFRB MC 2025-055 signed and released by the Board on Dec. 11, cancellations made by TNVS drivers are considered a violation under Refusal to Convey Passengers, which are punishable under Section IV.2 of Joint Administrative Order 2014-01.
Mendoza said the Resolution was issued after numerous commuter complaints about widespread booking cancellations in traffic-congested areas, which they aim to prevent during the holiday season.
