Philippine air carriers have warned of looming airfare hikes as Middle East tensions drive up fuel costs and necessitate costly flight rerouting.
Meanwhile, the Manila Electric Co. (Meralco) announced an increase of P0.6427 per kilowatt-hour (kWh) in electricity rates this March, raising the overall rate for a typical household to P13.8161 per kWh, up from P13.1734 in February.
In another development, some shipping companies have already increased their fares amid the ongoing tensions in the Middle East affect global crude oil supply.
The Maritime Industry Authority (MARINA) however, said ship operators may raise fares by up to 20 percent only during a crisis and must notify the public in advance.
“Our airlines are very concerned about the impact of the war on the global economy and the welfare of our fellow Filipinos in the Middle East and around the world,” Jose Enriquez Perez de Tagle, executive director of Air Carriers Association of the Philippines (ACAP) told the Manila Standard in a text message.
“In recent days, we have seen the cost of jet fuel rise sharply by over 90 percent, and this will have a significant impact on the cost of flying and consequently pressure on air fares,” he added.
According to the International Air Transport Association (IATA), fuel prices went up 64.4 percent to $157.41 per barrel as of March 6, 2026 and 74.8 percent compared to the same period in 2025.
De Tagle also said the airlines were closely monitoring the evolving situation and remained focused on prioritizing safety “as we evaluate the resumption of regular operations to the affected regions.”
Philippine Airlines earlier canceled its flights to Dubai, Doha, and Riyadh, while Cebu Pacific suspended services to Dubai and Riyadh.
Carmelo Arcilla, executive director of the Civil Aeronautics Board (CAB), said potential airfare increases will be discussed within the week.
“We announce the fuel surcharge level on the 15th of every month. Currently, we are at Level 4,” Arcilla said.
Under Level 4, the fuel surcharge for domestic flights ranges from P117 and P342, depending on the distance, while for international flights, the fuel surcharge may range from P385.70 and P2,867.82.
The CAB said for the cargo fuel surcharge, airlines are allowed to charge P0.60 to P1.76 per kilogram for domestic flights under Level 4 and P1.98 to P14.74 per kg. for international flights.
Airline fuel surcharge is an optional fee, imposed and collected by airlines to recover fuel costs and stem losses caused by upward spikes in fuel cost.
Arcilla added that the Department of Transportation (DOTr) and the aviation sector will convene to address any “extraordinary increases” in jet fuel prices resulting from the regional conflict.
Data from CAB showed that domestic passenger traffic rose to 33.24 million in 2025, surpassing the 32.13 million recorded in 2024. This recovery brings the industry back to its pre-pandemic level, ending the five-year slump that began in 2020.
International passenger traffic, on the other hand, grew to 29.1 million, up from 27.78 million in 2024.
Meanwhile, Meralco warned that the conflict in the Middle East will affect future power rates, though the exact impact on the next billing cycle remains undetermined.
Meralco sources 60 percent of its supply from power generators who supply natural gas (indigenous and imported), 20 percent coal, 10 percent renewable energy and 10 percent from the spot market.
Meralco vice president and head of corporate communications Joe Zaldarriaga said the March rate hike does not yet factor in the Middle East crisis, which is expected to impact consumers starting in April.
“Based on the directive of our chairman, Manuel V. Pangilinan, we are looking at our fuel sourcing, making sure that we have adequate fuel from our suppliers and from our generation arm,” Zaldarriaga said.
Meralco executive vice president and chief operating officer Ronnie Aperocho said that amid heightened geopolitical tensions in the Middle East and the potential ripple effects on global fuel markets, Meralco is proactively implementing all necessary measures to shield customers from possible supply disruptions and upward pressure on electricity prices.
“We are closely coordinating with our power suppliers to keep generation charges at least-cost while prioritizing reliability across our system. We are optimizing our energy mix and fully leveraging cost-efficient sources, regardless of technology. In addition, we are carefully managing our exposure to the Wholesale Electricity Spot Market (WESM), where price volatility is high. We will also secure lower-cost replacement power whenever needed,” Aperocho said.
For residential customers, Meralco is intensifying our efforts to share simple, actionable tips so households can better manage their electricity consumption.
“The Lifeline Rate Subsidy is also being fully implemented. Meralco has automatically registered customers whose records belong to the Department of Social Welfare and Development’s (DSWD) 4Ps program. We encourage other eligible Meralco customers to apply so they can maximize the subsidy for low-income and marginalized households with monthly consumption of 100 kWh and below,” Aperocho said.
Meanwhile, Meralco said that for a residential customer with a typical consumption of 200 kWh, the increase for March translates to approximately P129 on their total bill.
The primary driver of this month’s increase was a P0.2880 per-kWh hike in the transmission charge for residential customers.
As the country enters the dry season and the worsening Middle East crisis, when demand traditionally peaks, Meralco is urging customers to practice energy efficiency to help manage consumption.
Energy-saving tips from the company include unplugging appliances when not in use, utilizing natural light, ironing large batches of clothing at once, setting air conditioners to 25°C, and performing regular refrigerator maintenance.
Some shipping companies have increased fares for sea travel as ongoing tensions in the Middle East affect global crude oil supply.
According to Darlene Cay’s report on “24 Oras Weekend” on Sunday, some shipping firms have also canceled certain trips to reduce fuel consumption.
The Maritime Industry Authority (MARINA), however, said ship operators may raise fares by up to 20% only during a crisis and must notify the public in advance.
“They need to inform MARINA and the public. Publication is required. If a ship’s trading route is inter-regional, the new rates must be posted in all affected regions. There is a two-week publication requirement for any rate adjustments,” MARINA spokesperson Luisito delos Santos said in Filipino.
