Grab Philippines is threatening to increase its fare rates to as much as 10 percent if fuel prices increase due to new excise tax rates.
The ride-hailing app is set to file a petition before the Land Transportation Franchising and Regulatory Board (LTFRB) this week in light of the government’s tax reform program.
“We will file a petition with the LTFRB to request for a fare change anywhere between 6 to 10 percent of current fares,” Grab Philippines country manager Brian Cu said Wednesday.
Cu projected the increase to be P11 to P13 per trip if the petition is approved.
“We will not increase it until we see a significant increase in pump prices. And, again, that’s in the spirit of fairness,” he said.
Prices of liquefied petroleum gas (LPG) will increase by P1 per liter, diesel by P2.50 per liter, and gasoline by P2.65 per liter with the new excise taxes.