The Philippine airlines have sought a reduction in government charges over the fuel price hike.
The airlines have also demanded freeze the in government-imposed charges to help mitigate the effects of rising fuel prices on their operations.
Bonifacio Sam, Chairman of the Air Carriers Association of the Philippines (ACAP), while addressing a special sitting of a Fuel Crisis Ad Hoc Committee in the Filipino House of Representatives, said Mean of Platts Singapore (MOPS) oil prices had increased from US$79 per barrel in December 2021 to US$124 per barrel by March 4, 2022.
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He said that in 2018, the Philippines Civil Aeronautics Board (CAB), in consultation with the local aviation industry, had developed a formula to determine the fuel surcharges that airlines may impose on passenger fares to cushion the impact of rising fuel prices.The formula was twice amended.
Due to spiralling jet fuel prices, passenger fuel surcharges increased between “PHP108 and PHP411 peso (USD2.06 and USD7.86) in March 2022, compared to between PHP45 and PHP171 (USD0.86 to USD3.27) in March 2020 and March 2019 for domestic flights,” according to the CAB.
The passenger fuel surcharges for international flights also shot up.
ACAP represents the Filipino airline industry, including PAL Express, Cebgo, Cebu Pacific Air, Philippine Airlines, and Philippines AirAsia.
MOPS is the average of a set of Singapore-based oil product price assessments published by Platts, a global energy, petrochemicals, metals, and agriculture information provider and a division of S&P Global.
