By Ashley Erika O. Jose, Reporter
THE Civil Aeronautics Board (CAB) will raise the passenger fuel surcharge to Level 13 for Aug. 1-15 from Level 8 in the second half of July, marking the first increase after a six-review-period downtrend in fuel surcharge levels.
In an advisory issued Tuesday, the regulator said airlines collecting fuel surcharges in foreign currencies should use an exchange rate of P61.65 per US dollar.
At Level 13, fuel surcharges range from P423 to P1,237 for domestic flights and from P1,396.74 to P10,385.42 for international flights, depending on distance.
The new rates are more than double the current Level 8 surcharges, which range from P253 to P787 for domestic flights and from P835.05 to P6,208.98 for international routes.
Based on CAB’s indicative rates, passengers traveling to Singapore, Thailand, Malaysia, and Guam will pay a fuel surcharge of P1,931.72, while those flying to Indonesia, Japan, and South Korea will pay P2,172.80.
Fuel surcharges are variable fees added to base fares to offset fluctuations in jet fuel prices. The CAB adjusts the surcharge based on movements in jet fuel prices using the Mean of Platts Singapore (MOPS) benchmark.
The regulator shifted from a monthly review to a 15-day review cycle to respond more quickly to fuel price movements following the conflict in the Middle East.
The interim review cycle will remain in effect until market conditions stabilize or until the CAB revises or revokes the policy.
According to the International Air Transport Association (IATA), jet fuel prices rose 7.1% week on week to $160.06 per barrel as of July 24. Compared with a year earlier, prices were 77.8% higher.
“The rising global jet fuel prices that have surged to more than double 2025-year levels continue to significantly impact our operations,” AirAsia Philippines said in a statement.
Despite higher fuel costs, the low-cost carrier said it would reintroduce promotional fares with base fares starting at P188 as part of its efforts to stimulate travel demand in the second half of the year.
Meanwhile, the Department of Energy (DoE) said fuel retailers implemented price increases effective July 21 of up to P3.65 per liter for gasoline, P10.68 per liter for diesel, and P11.77 per liter for kerosene.
The DoE also said that, as of July 17, the country’s fuel inventory was sufficient to meet average daily demand of 78.08 million liters for about 45 days, while jet fuel stocks were enough for approximately 82 days.
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