MRT fare may increase from P15 to P44

An increase of as much as 200 percent in the current ceiling fare for the Metro Rail Transit (MRT) awaits passengers if the government’s plan to reduce the subsidy to the transport system pushes through. This means the current ceiling fare of P15 may become P44. The possible increase was tackled on Monday during the start of the deliberations of the Senate committee on finance on the proposed P1.645-trillion national budget for next year, according to a report by GMA News’ Ruth Cabal in “24 Oras." The increase also remains an option despite Budget Secretary Florencio Abad’s claim that the proposed MRT subsidy allocation for next year has been increased by as much as P2 billion, from P5 billion this year to P7 billion next year. Abad, however, was unable to explain to Senator Edgardo Angara, former chairman of the finance committee, why the national government is asking for a higher MRT subsidy despite plans to hike MRT fares, according to the “24 Oras" report. The Aquino government earlier proposed to cut down on the government subsidy for the transportation system by hiking fares instead.

Angara said that passenger fares may be hiked to as much as P44 to be able to reduce government subsidy. Interviewed by reporters after the hearing, Abad said the Department of Transportation and Communication (DOTC) is still reviewing proposals to increase MRT fares, even as it is asking for additional government subsidies for the MRT. The current ceiling fare for the MRT is P15 from North Avenue station in Quezon City to Taft Avenue station in Pasay City, but without a government subsidy, the actual cost is P60. “The public, to some extent, has to share the burden of having a convenient transport system," Abad said. Among the points being raised by the government to defend its proposal to reduce the subsidy for the MRT is that the transit system only benefits Metro Manila residents, while the money used to subsidize MRT operations comes from taxes paid by Filipinos nationwide. The Senate committee on public services meanwhile is also planning to hold deliberations on the proposal to increase fares for both the MRT and the Light Rail Transit (LRT). “Malaki nga ang subsidy pero saan natin ipapatong ngayon? Dapat hanapin natin kung saan ipapatong. Pwedeng sa Road User’s Tax natin," said Sen. Ramon Bong Revilla Jr., head of the committee. (The subsidy is indeed too much but where do we charge it against? We can charge it against the Road User’s Tax.) The MRT line transports some 450,000 passengers daily. The LRT Line 1, running from EDSA to Baclaran in Pasay City, carries over 400,000 passengers daily, while Line 2, running from Recto in Manila to Santolan in Pasig, carries some 170,000 commuters daily. - KBK/HS, GMANews.TV