THE Department of Transportation (DoTr) is reviewing airline fuel surcharges after regulators raised rates to Level 8 this month, as jet fuel prices remain elevated.
The DoTr, through the Civil Aeronautics Board (CAB), is assessing jet fuel prices to find out possible adjustments to passenger surcharges, following recent increases linked to the continued conflict within the Middle East.
“We began implementing the reduction of terminal fees for government-operated airports to assist lower costs. But the issue really is jet fuel prices, so we’re in talks with CAB to make vital adjustments if needed. We’re adjusting the fuel surcharge; it follows a matrix that goes up and down depending on the changes in fuel prices,” Transportation Acting Secretary Giovanni Z. Lopez said in a forum on Saturday.
Starting April, the CAB moved from a monthly review of fuel surcharges to a 15-day monitoring cycle to reply more quickly to cost movements.
For April 1 to fifteen, the CAB imposed a Level 8 surcharge, up from Level 4 in March. That is the very best level since Level 6 in August 2024, though below the height Level 12 recorded in August 2022.
At Level 8, airlines may charge fuel surcharges starting from P253 to P787 for domestic flights. For international flights, surcharges range from P835.05 to P6,208.98, depending on distance.
The CAB has yet to release its advisory for the second half of April. Mr. Lopez said some countries have already imposed a Level 20 surcharge, the utmost allowed under the CAB framework.
At Level 20, airlines may collect surcharges starting from P661 to P1,933 for domestic flights per way. For international flights, surcharges range from P2,183.11 to P16,232.44 per way, depending on distance.
For reference, passengers may pay an extra P2,183.11 for flights to Taiwan, Hong Kong, Vietnam, Cambodia, and Brunei; P3,396.10 for travel to Japan or South Korea; and about P15,459.47 for flights to North America and the UK.
“As of now, countries abroad have already imposed a Level 20 surcharge. We’re talking to CAB to make vital adjustments if needed. We hope not to achieve Level 20,” Mr. Lopez said.
Fuel surcharges are variable fees collected on top of base fares to offset changes in jet fuel costs. These are adjusted based on movements in jet fuel prices using the Mean of Platts Singapore benchmark.
Based on the International Air Transport Association, jet fuel prices fell 5.3% week on week to $197.83 per barrel. 12 months on yr, nonetheless, jet fuel prices surged 119.7%. — Ashley Erika O. Jose