P40 million monthly subsidy needed for LRT-2 discounts

MANILA, Philippines — The Light Rail Transit Authority has asked the government for additional funding, ahead of the LRTA implementation of a 50-percent discount on Monday.

LRTA administrator Hernando Cabrera said the LRT-2 would need a P40-million monthly subsidy to cushion the financial impact of the fare reduction. 

Under the LRT-2 updated matrix, fares will drop to between P6.50 and P16.50 for stored value cardholders and from P8 to P18 for single-journey tickets, depending on the passenger’s destination. The LRT-2 runs the Recto Avenue-Antipolo route.

The 50-percent fare discount for senior citizens, persons with disabilities and students using white beep cards will remain in effect.

Cabrera said the LRTA estimates a P35-million revenue loss from the discounts, on top of the expenditures for personnel services and upgrades.

“In the last three to four months, electricity expenses alone have reached up to P27 million per month,” Cabrera said. “We need around P40 million monthly as we anticipate an increase in electricity rates in the coming days.”

The same fare scheme will be applied to Metro Rail Transit (MRT) 3 single-journey tickets, beep cards and cashless payments.

According to MRT general manager Michael Capati, between P4 and P5 million will be lost in the train line’s revenue.

Meanwhile, private operator Light Rail Manila Corporation (LRMC) said it has not made an official announcement on the implementation of an across-the-board 50-percent discount on LRT-1.

“Until further notice, standard fare rates still apply to all LRT-1 operations,” the LRMC said.