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Understanding Taxi Fares in the Philippines

14/07/2022

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Navigating the Metre: A Guide to Taxi Fares in the Philippines

For travellers and residents alike, understanding how taxi fares are calculated is crucial for a smooth journey. In the Philippines, like most of the world, the humble taxi meter is the arbiter of your fare. This device meticulously tracks the distance travelled and the duration of your ride, translating this data into a monetary value based on government-regulated rates. Recently, a new law has been implemented, requiring passengers to add an extra PHP10 to the metered fare to account for increased fuel costs. However, the fundamental principle remains: the figure displayed on the meter is the basis for your payment.

How many taxi meters are recalibrated in Manila?
The LTFRB started the recalibration of taxi meters on Tuesday, July 31, at the Ninoy Aquino International Airport in ParaƱaque City. There are about 21,000 taxi units in Metro Manila. Only taxis with recalibrated meters can charge higher fares.
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The Meter is King: Why It Matters

The reliance on meters is a cornerstone of fair taxi services. Unfortunately, there are instances where drivers may attempt to bypass this system, often by "forgetting" to switch on the meter. This can lead to inflated prices, particularly frustrating for foreigners who may not be familiar with standard fares. A personal anecdote highlights this issue: a traveller in General Santos City experienced a driver who, after a 20-30 minute journey from the airport, demanded PHP400 for a trip that should have cost around PHP110. The driver claimed this was the "normal fare," despite the meter showing zero. The traveller, aware of the law requiring the use of the meter and the correct fare displayed, stood firm. After a tense exchange, which included threats of calling the police and the Land Transportation Office (LTO), the driver eventually accepted PHP100, significantly less than his initial demand and still short of the expected metered fare.

This experience underscores a vital strategy: know the law and be assertive. If a driver refuses to use the meter, politely but firmly remind them of their obligation. If they persist, offer what you believe is a fair price based on your knowledge of typical fares, or be prepared to escalate the matter by threatening to report them to the LTO. However, it's crucial to prioritise your safety. This approach is best employed in public, well-lit areas. If a driver attempts to take you to an isolated location, it's wiser to pay a slightly inflated fare than to risk your safety.

Recent Fare Adjustments and Meter Recalibrations in Manila

The taxi industry, like any other, is subject to economic fluctuations. In response to rising operational costs, particularly fuel prices, and to maintain competitiveness with ride-hailing services, the Land Transportation Franchising and Regulatory Board (LTFRB) has introduced new fare schemes in Metro Manila. These changes, implemented through the recalibration of taxi meters, aim to provide a more accurate reflection of the cost of service.

Key Changes in the New Fare Structure:

ComponentPrevious RateNew RateNotes
Flag Down RatePHP40PHP40Remains the same
Distance RateApprox. PHP11 per km (PHP3.50 for every 300m)PHP13.50 per kmIncreased rate
Travel Duration RatePHP3.50 for every 2 minutes (waiting time)PHP2 per minuteReplaced waiting time charge, covers congestion

The recalibration process began on July 31st at the Ninoy Aquino International Airport. For the approximately 21,000 taxi units in Metro Manila, only those with recalibrated meters are permitted to charge the new, higher fares. To signify compliance, these taxis will display a calibration certification sticker on the top right corner of their windshield. The recalibration itself comes with a fee of PHP1,110, covering the sealing, testing, and administrative aspects of the process.

LTFRB Chairman Martin Delgra III has issued a stern warning against drivers charging the new rates without the official sticker. Such acts are considered "overcharging" and can result in a PHP3,000 fine for the first offense. The introduction of the PHP2 per minute travel charge is particularly significant, designed to compensate drivers for time lost in Metro Manila's notorious traffic congestion, a long-standing concern for taxi operators.

Technological Advancements and Taxi Requirements

Beyond fare adjustments, the LTFRB is also pushing for enhanced safety and service standards. Taxi drivers are now required to use a mobile application from an LTFRB-accredited transport network company (TNC). Currently, Grab, MiCab, Hirna, and Hype are among the accredited services that taxis can integrate with. Furthermore, taxis are increasingly expected to be equipped with closed-circuit television (CCTV) cameras, dashcams, and global positioning system (GPS) devices. These measures aim to improve accountability, passenger safety, and the overall quality of taxi services.

How is taxi fare calculated in the Philippines?
The combination of distance/time used are caluculated based on Government regulations on how much taxi drivers are allowed to charge for their service. In the Philippines, and every other country that I am aware of, the fare that you are to pay is the amount that is shown on the meter.

Tips for a Fair Taxi Experience

  • Always Insist on the Meter: This is your primary defence against overcharging.
  • Note the Flag-Down Rate: Ensure it matches the displayed rate when the meter starts.
  • Be Aware of the New Rates: Familiarise yourself with the current distance and time charges.
  • Check for the Calibration Sticker: Especially in Manila, ensure the taxi is authorised for the new fare structure.
  • Communicate Clearly: State your destination clearly before starting the trip.
  • Keep Change Handy: While not always mandatory, having smaller denominations can simplify payments.
  • Be Polite but Firm: Most drivers are honest, but be prepared to assert your rights if necessary.
  • Tip Generously (Optional): If you receive excellent service, a tip of PHP10-PHP20 is appreciated, but not obligatory.

Frequently Asked Questions

Q1: What should I do if a taxi driver refuses to use the meter?
Politely insist they use it. If they refuse, state that you will report them to the LTO and offer a fare you believe is fair or what the meter would have shown. Prioritise your safety and do this in a public place.

Q2: What is the new additional charge for taxis in the Philippines?
A PHP10 surcharge is added to the metered fare to cover increased fuel costs.

Q3: How much is the new distance rate in Manila?
The new distance rate is PHP13.50 per kilometre.

Q4: What is the new travel duration rate?
The new travel duration rate is PHP2 per minute, intended to compensate for time spent in traffic.

Q5: Do all taxis in Manila have recalibrated meters?
No, only taxis that have undergone the official recalibration process and display a certification sticker are authorised to charge the new rates.

In conclusion, while the vast majority of taxi drivers in the Philippines operate with honesty and integrity, understanding the fare structure and your rights as a passenger is essential. By staying informed and assertive, you can ensure a fair and pleasant taxi experience across the archipelago.

If you want to read more articles similar to Understanding Taxi Fares in the Philippines, you can visit the Travel category.

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