NATION

Phl ramps up sustainable aviation fuel plan

Jonas Reyes

A multi-agency policy working group was established during the 2026 Sustainable Aviation Fuel (SAF) Policy Development Workshop led by the Department of Energy (DoE).

The Civil Aviation Authority of the Philippines (CAAP), Island Skies Alliance, Boeing, the Subic-Clark Alliance for Development and the National Aviation Academy of the Philippines were among those tapped to join the group.

The working group aims to accelerate priority actions for the development of a sustainable aviation fuel industry in the country. It was formed during the first installment of the 2026 SAF Policy Development Workshop.

Represented by the Renewable Energy Management Bureau, the DoE emphasized the role of SAF in enhancing national energy security and reducing dependence on imported fuels.

The workshop also reinforced cross-sector collaboration and aligned efforts toward building a viable and globally competitive SAF industry in the Philippines.

Aviation fuel consumption in the country reached 35.67 thousand barrels per day in 2023, recovering toward the pre-pandemic peak of 49.3 thousand barrels per day recorded in 2019.

Demand is driven by major carriers such as Philippine Airlines and Cebu Pacific. Consumption is expected to continue growing in 2024, despite high fuel surcharges.

Fuel surcharges, regulated by the Civil Aeronautics Board (CAB), are frequently adjusted due to volatile fuel prices. A Level 3 surcharge — ranging from P83 to P300 for domestic flights — has recently been implemented for 2026.

Jet fuel demand is projected to rise from 640,000 tons in 2023 to 1,095,000 tons by 2033.