As electric taxis continue to roll out on Cebu’s roads, the city council has warned that a new national transport rule may be outpacing local realities.
The Committee on Transportation, Communication, and Other Utilities, chaired by Councilor Winston Pepito, has flagged the possible impact of Land Transportation Franchising and Regulatory Board (LTFRB) Memorandum Circular No. 2025-050 on local taxi operators, particularly those affected by the entry of Green and Smart Mobility (GSM).
In a committee report, the council said the circular, opposed by Ken Transportation Inc., one of Cebu City’s registered transport operators, could disrupt existing services if implemented without proper coordination with the city government and affected stakeholders.
The issue reached the committee through a sangguniang panlungsod resolution which sought comments and recommendations on a letter from Ken Transportation president Jaycel Sato.
While acknowledging that Ken Transportation is only one of several operators in the city, the committee said the company’s objections reflect broader concerns about operational, financial, and regulatory pressures that could ripple across the transport sector.
Ken Transportation argued that LTFRB Memorandum Circular No. 2025-050 was issued without sufficient consultation with local stakeholders and could adversely affect existing transport operations.
In its findings, the committee emphasized that franchising and regulation of public land transportation fall under the authority of the national government, with the LTFRB empowered to issue memorandum circulars under its regulatory mandate.
Citing the Local Government Code and Supreme Court rulings, the report clarified that local government units cannot cancel, veto, or invalidate franchises or issuances made by national agencies.
However, the committee stressed that LGUs are not mere bystanders.
Although their powers are limited to regulation—not prohibition—LGUs are recognized stakeholders whose input matters, especially when national policies affect local traffic conditions, public convenience, and the livelihoods of transport workers.
“The concerns raised by Ken Transportation, Inc. highlight potential operational and economic challenges that may affect service delivery and employment, if left unaddressed,” the report said.
The council stopped short of rejecting the memorandum circular, saying its stated goals of modernizing and improving transport are valid.
Still, the committee said those objectives must be balanced against on-the-ground realities faced by existing operators.
Rather than blocking the circular, the committee recommended forwarding Ken Transportation’s concerns to the LTFRB for review and clarification.
It also urged the agency to hold further hearings or consultations with affected operators and the Cebu City Government, and to consider transition measures or reasonable timelines to cushion any adverse effects.
“Constructive engagement between the LTFRB, transport operators, and the Cebu City Government, in this matter, is necessary to ensure that national transport policies are implemented in a manner responsive to local conditions,” it said.
The council action comes as the Vietnam-based GSM has begun operating electric taxi units under a 90-day probationary authority issued by the LTFRB in November 2025, even as local taxi groups continue to protest.
LTFRB officials have said contested applications are elevated to the Board en banc for resolution, while local leaders have repeatedly called for coordination and data-driven planning before expanding the city’s taxi fleet.
The report said constructive engagement between national regulators, local government, and transport operators is key to ensuring that transport reforms serve both efficiency and public welfare. (LLP)
