Hefty air fare hike looms as fuel surcharge OK’d

Domestic air fares could be slapped an additional cost of up to P769 and those for international flights by as much as P9,860 with the reimposition by local carriers of the fuel surcharge.

The Civil Aeronautics Board (CAB) has approved the guidelines on the imposition of the passenger fuel surcharge for domestic and international flights.

The CAB also adopted a matrix for fuel surcharge that will be determined based on the two-month average of jet fuel MOPS (Mean of Platts Singapore) prices in its peso per liter equivalent and will be fixed for two months.

If the two-month price average of jet fuel per liter falls below P21, no fuel surcharge will be collected, said the CAB Resolution 44.

Based on the published and approved matrix, fuel surcharge rates for domestic flights are divided into five categories, depending on flight distance.

These are from 0 to 200 kilometers, 201 to 400 kms, 401 kms to 600 kms, 601 to 800 kms, 801 kms to 1,000 kms, and more than 1,001 kms.

For domestic flights of up to 200 kms, fuel surcharge would range from P34 to P201 per passenger, depending on the two-month price average of jet fuel.

As for flights that are more than 1,001 kms, fuel surcharge to be imposed would range from P132 to P769, again depending on the price average of jet fuel.

Meanwhile, for international flights originating from the Philippines, the seven groups are: 1) Taiwan, Hong Kong, Vietnam, Cambodia, Brunei; 2) China; 3) Singapore, Thailand, Malaysia, Guam; 4) Indonesia, Japan, South Korea, Port Moresby; 5) Australia, Middle East 6) New Zealand, Honolulu; and 7) North America, United Kingdom.

For the nearest routes or the first group, fuel surcharge would range from P163 to P1,035, while flights to North America and United Kingdom would see additional cost of between P1,557 to P9,860.