Cap on driving schools’ license fees set April 15

THERE will be no postponement in implementation of the price cap on fees being charged by private driving schools on driver’s license applicants.

According to Land Transportation Office (LTO) chief Jay Art Tugade, the implementation of the new policy will still push through as scheduled on April 15 this year.

Tugade issued the statement after the Association of Accredited Driving Schools of the Philippines Inc. (AADSPI) appealed to the LTO on Thursday to defer the implementation of Memorandum Circular JMT-2023-2390, or the Omnibus Guidelines on the Accreditation, Supervision and Control of Driving Institutions,and the Standardization of Driver and Conductor’s Education.

The AADSPI argued that because of the LTO’s recent policy that “imposed training rates applies additional qualifications for accreditation and requires the use of a new system with insufficient preparation to its stakeholders,” the industry faces “operational and financial challenges” that may affect the quality of services that they deliver.

Tugade, however, said the new policy cannot be delayed any longer in response to a growing call from the public for a more affordable cost of obtaining a driver’s license.

“It is unlikely that we will postpone the implementation of the new driving school rates. The LTO cannot turn a deaf ear to the calls of the majority against the exorbitant fees charged by driving schools. It’s time to make it affordable for the public to get a driver’s license without compromising the quality of the applicants’ learning,” the LTO chief said on Friday.

“We have deliberately pushed the reduced cost of driving school courses to give an opportunity to many who want to have a driver’s license for their work but cannot pursue it because of the high fees at the moment,” he added.

At the same time, Tugade stands by the maximum prescribed rates for driving schools “because [the rates] went through consultations and a reasonable costanalysis” by the agency’s technical working group (TWG).

“The LTO stands firm with the maximum rates it has prescribed for driving schools. The said price ceiling has undergone sufficient consultations and an in-depth cost analysis by the TWG. In coming up with these rates, it was the objective of the LTO to lower the exorbitant fees charged by some driving schools but at the same time not to deprive the accredited driving schools of a reasonable rate of return on their investment,” he said.

Tugade added that the drafting of the memorandum went through a series of consultations with driving schools.

“In fact, the expenditure items and the costs used by the TWG in its cost analysis to arrive at the prescribed maximum rates came from the driving schools. Contrary to the allegations that their inputs were disregarded or not considered by the LTO, the price of the TDC was increased based on their feedback,” he said.

On the 8-hour Practical Driving Course (PDC), Tugade also said it went through a thorough study by the LTO and has been in operation since August 2020 and the agency has not received any complaints about it.

Besides, he added, only the LTO can determine whether eight hours of training are enough to test an applicant’s ability to drive safely.

“The determination of whether the duration of 8 hours is sufficient to produce a qualified driver ultimately falls within the competence of the LTO since the ability of an applicant to drive safely is assessed during the practical examination administered by LTO driving skill raters,” Tugade said.

He also said the LTO does not prohibit driving schools from offering value-added services such as pick-up, but it must still be included in the agency’s set fee.

“They must work within the allowable rates when offering value-added services without resorting to charging additional fees,” according to the LTO chief.