Fuel surcharge may jump to Level 20 as gov’t weighs hike

A sharp surge in aviation fuel surcharges looms, with rates potentially jumping from the Level 8 until mid-April to the maximum Level 20 for the remainder of the month as global fuel prices continue to climb.

While an updated surcharge matrix has yet to be officially released, the Department of Transportation (DOTR) said it has begun discussions with the Civil Aeronautics Board (CAB) to assess the need for adjustments.

Speaking at a forum on Saturday, Transportation Acting Secretary Giovanni Lopez said the sharp increase in jet fuel prices is prompting a review of the surcharge level.

“When the crisis began, jet fuel was really one of the most affected. Before the war, airline companies were buying it at $80 to $90 per barrel, but now it has surged to around $200 per barrel,” he said.

He noted that while the country maintained relatively lower surcharge levels in recent months, global benchmarks have already reached the highest tier.

“For the entire month of March, we kept it at Level 4 even though fuel surcharges in other places had already reached Levels 13 and 14. As far as I know, the surcharge level in other parts of the world is now at Level 20,” Lopez added.

The DOTr is now coordinating with the CAB on the next steps, although Lopez expressed hope that the maximum level can still be avoided.

A temporary 15-day monitoring cycle, replacing the usual monthly schedule, has been implemented to allow faster response to rising fuel prices.

“We have already spoken with the CAB to make the necessary adjustments if needed, but hopefully it won’t reach Level 20 even if that is what’s warranted. I will talk to the CAB because the impact is really being felt,” he said.

Under a potential shift to the maximum Level 20 fuel surcharge, surcharges will range from P661 to P1,933 for domestic flights, up from P253 to P787 at Level 8.

A mid-range route would increase from P503 to P1,316, or an additional P813 per passenger one-way, while longer routes see differences of over P1,100.

The impact is even more pronounced for international travel. Under Level 20, fuel surcharges range from P2,183 to P16,232, compared with P835 to P6,208 at Level 8.

Flights to destinations such as Japan or Korea would rise from about P1,154 to over P3,019, an increase of nearly P1,900 per passenger one-way. For long-haul routes like North America or Europe, surcharges jump from around P5,913 to P15,459, adding nearly P9,500.

Despite the expected adjustments, Lopez said regulators will rely on the existing surcharge mechanism rather than altering base fares.

“We are not touching the base fare; we are adjusting the fuel surcharge. It follows a matrix—it goes up, it goes down automatically. It is more of a direct response to changes in fuel prices,” he explained.

To help cushion the impact on airlines and passengers, the DOTR implemented cost-reduction measures. These include lower terminal fees for government-operated airports and reduced navigational, landing, and takeoff charges.

“Airline companies will be able to save as much as P5,000, which will basically help sustain our airfares,” Lopez said.