CAB: Too early to say if fuel surcharge will keep going down

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(FILE PHOTO)

Metro Manila (CNN Philippines, August 19) — The Civil Aeronautics Board said Friday it remains to be seen if fuel surcharge — the fee airlines can collect to help make up for losses due to sudden upticks in jet fuel costs — will continue to drop as prices remain unpredictable.

"We hope and pray that the trend will continue, although it is very early to say dahil volatile pa nga ang presyo…pag tinignan mo 'yung graph, parang lagari siya. Akyat-baba, akyat-baba," CAB executive director Carmelo Arcilla said in a government briefing.

[Translation: We hope and pray that the trend will continue, although it is very early to say because prices are still volatile…if you look at the graph, it resembles a saw. Up and down, up and down.]

The regulator recently downgraded fuel surcharge from Level 12 to Level 9 for the entire September. This came as the price of jet fuel averaged ₱46.73 per liter from July 10 to August 9, compared to ₱54.73/l a month prior.

For example, the fuel surcharge for a one-way flight to Cebu will be ₱520 under Level 9 compared to ₱740 under the previous level. A passenger will save over ₱400 in a round trip flight given the lower level, said Arcilla.

A lower fuel surcharge is good news for airlines since it attracts more passengers, added the CAB executive.