The Civil Aeronautics Board (CAB) has reduced the passenger fuel surcharge from Level 13 to Level 12 for the period of August 16–31, reflecting a decline in global jet fuel prices.

In an advisory issued on Wednesday, the CAB stated that under Level 12, airlines operating domestic flights may collect fuel surcharges ranging from P389 to P1,137 per passenger. For international flights departing from the Philippines, surcharges may range from P1,284.80 to P9,550.13, depending on the destination and flight distance.

Fuel surcharges are variable fees applied on top of base fares, designed to help airlines offset fluctuations in jet fuel costs. For travelers and carriers alike, the CAB’s periodic adjustments can affect the final ticket price without changing the base fare itself. The CAB sets and adjusts these surcharges using the Mean of Platts Singapore (MOPS) benchmark, a widely used pricing reference for refined petroleum products in the Asia-Pacific region.

The regulator moved from its previous monthly review cycle to a 15-day review cycle in order to respond more promptly to fuel price movements following instability in the Middle East. The interim 15-day cycle will remain in effect until market conditions stabilize or until the CAB revises or revokes the policy.

According to data from the International Air Transport Association (IATA), jet fuel prices fell 7.5% week on week to $146.93 per barrel as of August 7. On a year-on-year basis, however, jet fuel prices were up 63.2%.

The CAB, an attached agency of the Philippines' Department of Transportation, is responsible for regulating the country's civil aviation sector, including the approval of airfare structures and surcharge levels.

Source: BusinessWorld Online — By Ashley Erika O. Jose