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Jean Mangaluz - Philstar.com
December 12, 2025 | 5:56pm
Motorists experience heavy traffic along EDSA Buendia near Estrella on October 27, 2023 night, just a few days ahead of All Saints' Day
The STAR / Walter Bollozos
MANILA, Philippines (Updated 6:03 p.m.) — To temper sharp fare increases by ride-hailing services during the holiday rush, regulators have issued new guidelines on how transport network vehicle service firms must compute surge pricing.
In a statement released Friday, December 12, the Land Transportation Franchising and Regulatory Board said the adjusted surge pricing rules will be effective from December 17 to January 4, 2026, while the agency continues studying longer-term reforms on surge rate computation.
“We heard the complaints and we also feel the sentiments raised by those in the TNVS sector. That is why we immediately acted on the instruction of President Marcos and Secretary Lopez to come up with the guideline on the computation of TNVS fares,” LTFRB Chair Vigor Mendoza said in a statement.
The LTFRB said surge pricing was originally intended to balance supply and demand and encourage drivers to stay on the road during peak hours. However, the agency said there is a lack of clear parameters on rate computation, particularly during high-demand periods.
The LTFRB has since issued Memorandum Circular 2025-056, setting rules on surge charges during the Christmas and New Year season.
The new computation
Under the new circular, surge pricing must be computed using the per-kilometer rate plus the per-minute rate charge, with the flagdown rate included in the computation.
As an example, the LTFRB said a sedan traveling five kilometers for 10 minutes must not incur a surge charge exceeding P95.
The agency did not release a full rate table, saying the illustration reflects the maximum allowable surge under the new formula.
Ride-hailing companies, however, are prohibited from charging a surge portion of fares on TNVS drivers during the implementation period.
“The TNCs (Transport Network Companies) 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,” the memo read.
Holiday demand, enforcement warnings. High traffic volumes have been recorded across the metro with the holiday season coming to a full swing.
The LTFRB recently warned TNVS drivers and operators against unjustified cancelations and refusals to pick up passengers, saying violators may face penalties.
