Higher fuel surcharge could push air fares up in August

National

FLYING could become more expensive next month as airlines are allowed to impose higher fuel surcharges amid rising jet fuel prices.

The Civil Aeronautics Board (CAB), in its latest advisory, raised the applicable passenger and cargo fuel surcharge for domestic and international flights to Level 13 for Aug. 1 to 15, up from Level 8 in effect from July 16 to 31.

Under Level 13, airlines may impose a fuel surcharge of P423 to P1,237 for domestic flights, depending on the distance. For international flights, the surcharge may range from P1,396.74 to P10,385.42.

The new rates are significantly higher than those under the current Level 8, which allows surcharges of P253 to P787 for domestic flights and P835.05 to P6,208.98 for international services.

The CAB has shifted from its usual 30-day coverage for fuel surcharge adjustments and is now reviewing the levels every 15 days to respond more quickly to movements in the oil market.

The interim arrangement will remain in place until market conditions stabilize or the policy is revised or revoked.

Airlines that intend to collect the fuel surcharge during the first half of August must file their applications with the CAB on or before the effective period. The surcharge may not exceed the rates prescribed under Level 13.

For fuel surcharges collected in foreign currency, the CAB set the conversion rate at P61.45 to $1.(MyTVCebu)