Airline passengers in the Philippines will pay lower airfares starting March 2019 as jet fuel price continue to decline, according to the Civil Aeronautics Board (CAB).
With the looming decline in the prices of jet fuel, airline companies will be required to lower fuel surcharge rates in both domestic and international flights.
Depending on the distance of travel, additional fuel surcharge will fall to P45-P171 (range) per passenger for domestic flights, and P218-P2,076 (range) for international flights.
This is lower than the currently imposed additional fuel surcharge rate of P74 to P291 for domestic passengers, and P381 to P3,632 for international passengers.
CAB Executive Director Carmelo Arcilla said that under the fuel surcharge matrix, rates would go down from Level 3 to Level 2 starting March 1 to April 30, 2019.
Arcilla said the surcharge was suspended in 2014 when the global fuel price decreased by at least USD67 per barrel, however, the jet fuel surged to USD92.4 per barrel in August 2018.
In September 2018, CAB approved the fuel surcharge matrix as airline companies’ basis in determining the amount of fuel surcharge that passengers must pay.
According to the fuel surcharge matrix, Level 2 will only be implemented when the two-month average price of jet fuel is between P24 and P27 per liter.
If the two-month average price falls below P21, fuel surcharge will no longer be collected.