Air passenger fuel surcharge reduced for first half of June

THE Civil Aeronautics Board (CAB) said it reduced the air passenger fuel surcharge for a third consecutive period, setting the rate at Level 13 for June 1-15 from Level 15 in the second half of May.

At Level 13, fuel surcharges range between P423 and P1,237 for domestic flights and P1,396.74 and P10,385.42 for international flights, depending on distance.

For airlines collecting fuel surcharges in a foreign currency, the applicable conversion rate for the June 1-15 period is P61.45 to the dollar, the CAB said.

Fuel surcharges are additional fees imposed by airlines to offset movements in jet fuel prices and are adjusted using the Mean of Platts Singapore benchmark.

The CAB started lowering fuel surcharge starting May 1. The surcharge hit an all-time high of Level 19 for April 16-30, just one level below the maximum allowable rate of Level 20.

According to the International Air Transport Association, jet fuel prices dropped 1.7% week on week to $159.85 per barrel as of May 22, though prices remained 77.5% higher year on year.

The Department of Energy estimated Philippine average daily jet fuel demand at 5.65 million liters, with current inventory sufficient for 66 days’ use as of May 22.

In April, the CAB started to shift from a monthly review of fuel surcharges to a 15-day monitoring cycle to respond more quickly to movements in fuel prices following the fighting in the Middle East.

The shorter cycle will remain in effect until conditions in the Middle East stabilize or until revised or revoked, CAB Executive Director Carmelo L. Arcilla has said previously. — Ashley Erika O. Jose