The Civil Aeronautics Board said Monday it allowed airlines to impose higher fuel surcharge next month to offset the rising jet fuel costs.
CAB officer-in-charge Maria Elben Moro said the price of jet fuel averaged P54.73 per liter from June 10 to July 9 this year, which corresponds to Level 12 of the passenger and cargo fuel surcharge matrix in August. It was higher than July’s Level 11.
She said under Level 12 of the new passenger fuel surcharge matrix, airlines are allowed to collect fuel surcharge of P380 to P1,137 for domestic flights and P1,284.40 to P9,550.13 for international flights.
The CAB said for cargo fuel surcharge, airlines are allowed to charge P2 to P5.85 per kilogram for domestic flights under Level 12 and P6.60 to P49.09 per kg for international flights.
“Airlines wishing to impose or collect fuel surcharge must file its application with CAB on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” Moro said.
The CAB said 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.
It said fuel surcharge is not a part of the basic airfare and maybe reduced or removed depending on the price of jet fuel in the market.
CAB said airlines are allowed to collect fuel surcharge rates that are lower than the stated level if they choose to do so depending on how they want to compete with other carriers.
“If the one-month price average of jet fuel per lite falls below P21, no fuel surcharge will be collected,” CAB said.
“Government approvals shall be secured by the airline prior to any imposition, collection of implementation of fuel surcharge or change thereof, and shall not exceed the applicable prevailing rates as determined by CAB,” the agency said.