October 07, 2018

Passenger Fuel Surcharge Reintroduced After 3 Years (with Matrix Guide)

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  • The Civil Aeronautics Board (CAB) in the Philippines has announced the passenger fuel surcharge matrix for the next 12 months. This will affect both domestic and international flights for all airlines operating in the country.

    A fuel surcharge is an optional additional charge added to the cargo rate to cover the additional costs of increasing fuel prices and these will generally follow a certain index or matrix. The matrix took effect last September 14, 2018, under the Resolution No. 44 published in CAB’s website and in leading newspapers.

    In 2015, CAB lifted all authority to impose any fuel surcharge on international and domestic flights for passengers. This was when fuel price in the world market radically declined to 63.66 USD/ Barrel with an exchange rate of Php 44.8 to a dollar. This is the first time fuel surcharge is allowed in three years.

    The document noted the fuel increase from November 2017 of 74.037 USD/ Barrel to 85.16 USD/ Barrel in April 2018 based on the Mean of Platts Singapore (MOPS). Another reason for the surcharge was “the continuous escalation of the foreign exchange rate (1 USD= 44.08 Php in 2015 to 1 USD= 53.75, June 2018)”.

    Airlines are now the primary mover of trade and transport, therefore, this fuel surcharge matrix will allow them to thrive and be competitive in the market. The CAB will now issue a matrix every year but will evaluate the fuel surcharge every two months. Airlines are required to secure an approval before any implementation or collection of fuel surcharge.

    Also read: List of International Airlines flying to Philippines

    Flight Distance: 0-200 kms

    Sample Domestic flights: Cebu to: Tagbiliran, Surigao, Bacolod, Iloilo, Dumaguete
    International flights: Taiwan, Hong Kong, Vietnam, Cambodia, Brunei

    Fuel Price Range More than Php 21
    less than Php 24/ liter
    More than Php 24
    less than Php 27/ liter
    More than Php 27
    less than Php 30/ liter
    More than Php 30
    less than Php 33/ liter
    More than Php 33
    less than Php 36/ liter
    More than Php 35
    less than Php 39/ liter
    More than Php 39
    less than Php 42/ liter
    Domestic Flights 34 45 74 108 139 170 201
    International Flights 163 218 381 543 745 872 1035

    Flight Distance: 201-400 kms

    Sample Domestic flights: Manila to: Caticlan, Legaspi, Kalibo; Cebu to: Cagayan, Siargao, Davao; Davao to: Dumaguete, Tagbiliran
    International flights: China

    Fuel Price Range More than Php 21
    less than Php 24/ liter
    More than Php 24
    less than Php 27/ liter
    More than Php 27
    less than Php 30/ liter
    More than Php 30
    less than Php 33/ liter
    More than Php 33
    less than Php 36/ liter
    More than Php 35
    less than Php 39/ liter
    More than Php 39
    less than Php 42/ liter
    Domestic Flights 68 77 124 175 226 277 328
    International Flights 199 265 463 662 904 1059 1257

    International flights: Indonesia, Japan, South Korea, Port Moresby

    Fuel Price Range More than Php 21
    less than Php 24/ liter
    More than Php 24
    less than Php 27/ liter
    More than Php 27
    less than Php 30/ liter
    More than Php 30
    less than Php 33/ liter
    More than Php 33
    less than Php 36/ liter
    More than Php 35
    less than Php 39/ liter
    More than Php 39
    less than Php 42/ liter
    International Flights 289 385 673 962 1314 1539 1827

    Flight Distance: 401-600 kms

    Sample Domestic flights: Manila to: Iloilo, Bacolod, Cebu, Puerto Princesa; Cebu to: Zamboanga, General Santos, Puerto Princesa
    International flights: Australia, Middle East

    Fuel Price Range More than Php 21
    less than Php 24/ liter
    More than Php 24
    less than Php 27/ liter
    More than Php 27
    less than Php 30/ liter
    More than Php 30
    less than Php 33/ liter
    More than Php 33
    less than Php 36/ liter
    More than Php 35
    less than Php 39/ liter
    More than Php 39
    less than Php 42/ liter
    Domestic Flights 75 98 170 235 304 373 441
    International Flights 238 317 555 793 1085 1270 1508

    Flight Distance: 601-800 kms

    Sample Domestic flights: Manila to: Caticlan, Legaspi, Kalibo; Cebu to: Cagayan, Siargao, Davao; Davao to: Dumaguete, Tagbilaran

    Fuel Price Range More than Php 21
    less than Php 24/ liter
    More than Php 24
    less than Php 27/ liter
    More than Php 27
    less than Php 30/ liter
    More than Php 30
    less than Php 33/ liter
    More than Php 33
    less than Php 36/ liter
    More than Php 35
    less than Php 39/ liter
    More than Php 39
    less than Php 42/ liter
    Domestic Flights 68 77 124 175 226 277 328

    Flight Distance: 801-1000 kms

    Sample Domestic flights: Manila to: Zamboanga, Cotabato, Davao; Clark to: Cagayan
    International flights: New Zealand, Honolulu

    Fuel Price Range More than Php 21
    less than Php 24/ liter
    More than Php 24
    less than Php 27/ liter
    More than Php 27
    less than Php 30/ liter
    More than Php 30
    less than Php 33/ liter
    More than Php 33
    less than Php 36/ liter
    More than Php 35
    less than Php 39/ liter
    More than Php 39
    less than Php 42/ liter
    Domestic Flights 119 154 262 368 475 583 690
    International Flights 962 1282 2244 3205 4380 5128 6090

    Flight Distance: More than 1001 kms

    Sample Domestic flights: Manila to: General Santos
    International flights: North America, United Kingdom

    Fuel Price Range More than Php 21
    less than Php 24/ liter
    More than Php 24
    less than Php 27/ liter
    More than Php 27
    less than Php 30/ liter
    More than Php 30
    less than Php 33/ liter
    More than Php 33
    less than Php 36/ liter
    More than Php 35
    less than Php 39/ liter
    More than Php 39
    less than Php 42/ liter
    Domestic Flights 132 171 291 411 530 650 769
    International Flights 1557 2076 3632 5189 7092 8303 9860

    Also read: Tips to Survive Long-Haul Flights

    Philippine Airlines and Cebu Pacific Air, who submitted their petition earlier have been approved by CAB to start imposing fuel surcharges on plane ticket fares starting September 19. While AirAsia announced that they will not increase their prices, keeping their “No Fuel Surcharge” policy for a number of countries since 2015.

    Also read: LIST: Commercial Airlines in the Philippines


    Source: Civil Aeronautics Board, AirAsia

               
               
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