Commuters in Cebu City were recently hit with an unexpected and unwelcome development at ticket booths: a sudden 25 percent surge in van-for-hire fares. In response, government authorities are now taking decisive action to hold those responsible accountable for these illegal price increases.
Show Cause Order Issued
The Land Transportation Franchising and Regulatory Board (LTFRB) 7 has formally issued a "show cause order" to a specific van-for-hire unit. This regulatory move follows multiple reports that drivers were charging passengers above the legal limit at a popular mall terminal in Cebu City.
LTFRB 7 Director Abosamen Matuan confirmed the action on Friday, March 13, 2026. He detailed that enforcers intervened after thoroughly validating complaints about overcharging practices. Although only one van belonging to a cooperative was caught during the inspection, officials suspect other drivers may have concealed or halted their overcharging once they became aware of undercover enforcers in the vicinity.
"Rest assured that this regional office will be responsive to the concerns being brought to us," Matuan emphasized, underscoring the agency's commitment to addressing passenger grievances.
Details of the Fare Increase
The controversy initially emerged on Thursday, March 12, when passengers traveling between Cebu City and Lapu-Lapu City began voicing complaints about the price hike. Drivers were allegedly adding an extra P10 to the standard P40 fare for trips from a Cebu City mall to Barangay Pajac in Lapu-Lapu City, bringing the total to P50.
Investigators who visited the terminal on Wednesday, March 11, verified that fares had indeed escalated to P50. Drivers justified the increase by citing rising fuel prices, but this explanation does not align with regulatory requirements.
Legal Framework and Government Authority
According to the Department of Transportation (DOTr) and the LTFRB, drivers cannot unilaterally decide to raise fares. Even as fuel costs fluctuate, any modification to the official fare matrix must receive prior government approval. Under Republic Act 11314, known as the Student Fare Discount Act, specific discounts must always be honored, and operators who disregard the official price list are violating the law.
Director Matuan clarified that only the LTFRB possesses the authority to alter what passengers pay, reinforcing the importance of adhering to established regulations.
Penalties and Ongoing Measures
The consequences for overcharging are severe and include:
- Fines ranging from P5,000 to P15,000
- Vehicle impoundment for 30 days
- Potential cancellation of the operator's franchise
The LTFRB is currently awaiting the van operator's explanation before determining the final punishment. Meanwhile, the agency is encouraging the public to continue reporting any instances of overcharging to the regional office to help maintain fair fares for all commuters.
