By Ashley Erika O. Jose, Reporter
THE CIVIL Aeronautics Board (CAB) raised the passenger fuel surcharge to Level 19 for April 16-30, the highest since 2022 and just below the maximum allowable rate, increasing fares for flights booked during the period.
The rate follows the Level 8 surcharge imposed for April 1-15, based on an April 13 advisory released on Wednesday, with the increase more than doubling earlier rates.
At this level, fuel surcharges range from P627 to P1,834 for domestic flights and from P2,070.77 to P15,397.15 for international flights, depending on distance.
Indicative rates show that passengers may pay an additional P2,071 for flights between Manila and Taiwan, Hong Kong, Vietnam, Cambodia, and Brunei. Surcharges rise to about P3,221.34 for routes to Indonesia, Japan, South Korea, and India and can reach as much as P14,663.96 for flights to North America, the United Kingdom, and the Netherlands.
Fuel surcharges are variable fees added to base fares to offset changes in jet fuel costs and are adjusted based on movements in jet fuel prices using the Mean of Platts Singapore benchmark.
According to the International Air Transport Association (IATA), jet fuel prices fell 6.7% week on week to $184.63 per barrel as of April 17 but surged 105.1% year on year.
The Level 19 fuel surcharge, just below the maximum Level 20, is the highest in four years, based on CAB data.
Starting in April, the CAB shifted from a monthly review of fuel surcharges to a 15-day monitoring cycle to respond more quickly to fuel price movements following the war in the Middle East.
“This interim measure shall be in effect until the current situation stabilizes, or as may be revised or revoked accordingly,” CAB Executive Director Carmelo L. Arcilla said.
For airlines collecting surcharges in foreign currency, the equivalent rate is P59.95 to the dollar, the CAB said.
Local airlines earlier assured sufficient jet fuel supply following concerns about possible aircraft grounding due to supply constraints.
For low-cost carrier AirAsia Philippines, geopolitical uncertainty has pushed operating costs beyond initial forecasts, as jet fuel prices more than doubled from last year’s levels.
“While rising fuel costs continue to impact airline business models built on affordable fares, we continue to find ways to keep travel as accessible as possible without compromising the safety and reliability of our flights,” the airline said in a statement.
Data from the Department of Energy showed that the country’s jet fuel supply could last up to 61 days as of April 17.
Transportation Acting Secretary Giovanni Z. Lopez said the fuel surcharge could reach Level 20, given the current trajectory of prices.
‘VERY CONCERNING’
“Level 19 is already next to the highest level, which is Level 20, and that is already very concerning. Yet the tensions in the Middle East have not yet abated, so it’s very much possible we could reach that,” said Nigel Paul C. Villarete, a senior adviser on public-private partnership at Libra Konsult, Inc., and former chief executive officer of the Mactan-Cebu International Airport Authority.
“In the meantime, it may also make people spend less on travel, although we do want them to spend more, especially foreign visitors, because tourism is a major economic driver in our country,” he said.
“A high surcharge means high fear of possible supply constraints… So high surcharge is meant to kill or discourage some demand for air travel. The leisure travel will be canceled temporarily, and only necessary and business travels will proceed via high fare surcharge,” Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers, said in a Viber message.
IATA warned that flight cancellations could emerge in some regions due to jet fuel shortages, citing the International Energy Agency (IEA).
“This is already happening in parts of Asia. Along with doing everything possible to secure alternative supply lines, it’s important that authorities have well-communicated and well-coordinated plans in place in case rationing becomes necessary, including for slot relief,” IATA Director-General William M. Walsh said.
Jet fuel accounts for about 7% of global oil demand, with markets becoming more vulnerable due to disruptions in Middle East supply, IEA said.
Earlier this month, the Civil Aviation Authority of the Philippines encouraged airlines to adopt sustainable aviation fuel (SAF) and is assessing the viability of local production.
The Institute for Climate and Sustainable Cities (ICSC) said adopting SAF from local and diversified feedstock could reduce reliance on imported fuels and help stabilize prices in the long term, shielding airlines from sharp fossil fuel price spikes.
“In the Philippines, however, these benefits will only be realized if domestic SAF production is developed and local feedstock supply is strengthened,” ICSC Chief Data Scientist Jephraim C. Manansala said via e-mail.
IATA reported in December that SAF accounted for 0.6% of total jet fuel consumption last year.
The group attributed limited supply to weak policy support and noted that SAF remains more expensive than fossil-based jet fuel.
“SAF today remains significantly more expensive than conventional jet fuel — typically around two to five times the cost. This premium makes voluntary uptake unlikely without support. Incentives can help bridge this gap and encourage initial adoption,” Mr. Manansala said.
“Imported SAF does not eliminate foreign dependence; it shifts it… For SAF to truly strengthen energy security, incentives must be tied to domestic production. That means supporting local industries with feedstocks, agricultural residues, waste oils, biomass, and building enough production capacity in the Philippines,” he added.
