LTFRB Imposes ₱60 Price Cap on App-Based Taxi Booking Fees to Protect Commuters

In a decisive move to curb erratic pricing in digital transport services, the Land Transportation Franchising and Regulatory Board (LTFRB) has officially implemented a strict price ceiling on booking and platform fees collected by app-based passenger taxis.

Under the newly approved Memorandum Circular (MC) 2026-055, the authorized platform fee is now restricted to a maximum of ₱60 or 20% of the total metered fare—whichever amount is lower.

Eradicating Inconsistent Digital Surcharges

The directive, issued under the guidance of Transportation Secretary Giovanni Lopez, was established following a surge of commuter complaints regarding unpredictable and unauthorized booking add-ons. Prior to this ruling, the lack of a clear regulatory framework allowed various digital transport network companies (TNCs) and operators to independently dictate platform fees, causing severe confusion among the riding public.

"The absence of a clear policy on the matter has resulted in unauthorized or inconsistent collection of additional charges," the LTFRB noted in an official statement.

Courtesy: Land Transportation Franchising and Regulatory Board - LTFRB

LTFRB Chairperson Atty. Vigor D. Mendoza II emphasized that the uniform guidelines will guarantee fair play as a massive segment of the commuting population transitions to app-based bookings. The "whichever is lower" caveat is highly critical for short-distance commuters; for instance, a short ₱150 metered ride will carry a maximum platform fee of only ₱30 (20%), rather than the full ₱60 ceiling.

New Transparency Mandates for Operators

The circular outlines explicit operational requirements that digital transport platforms and taxi operators must follow immediately:

• Separated Fare Component Disclosures: App providers must clearly itemize all fare components before a passenger confirms a booking.
• Receipt Integration: The exact authorized booking fee must be independently reflected in electronic receipts, trip summaries, and digital billing statements.
• Mandatory Record-Keeping: Operators are required to maintain strict data logs of all booking-related charges for routine regulatory audits and agency inspections.

Strict Bans and Regulatory Penalties

To fully safeguard consumers, MC 2026-055 explicitly outlaws several deceptive pricing strategies. The LTFRB has strictly prohibited the introduction of arbitrary or dynamically generated booking charges, duplicate or overlapping fees, hidden convenience surcharges, and any pricing structures that fail to appear on the official electronic receipt.

The regulatory body warned that any driver, operator, or platform provider caught violating these rules will face heavy administrative sanctions. Penalties include steep corporate fines, immediate suspension of operations, or the permanent cancellation of franchises and transport accreditations.

The policy applies uniformly to all taxi units utilizing online booking mechanisms and will take full effect immediately following its publication in a newspaper of general circulation.