FREQUENT flyers in domestic flights in the Visayas and Mindanao, along with overseas Filipino workers (OFWs), welcome the announcement of the Civil Aeronautics Board (CAB) that it has agreed to downgrade the fuel surcharge from the current Level 6 to Level 5 effective this September.
Fuel surcharges are the government’s way of somehow subsidizing the operations of airlines. They are allowed to collect the agreed amounts to help them recover fuel costs.
Needless to say, these amounts are separate from the base fare which is the actual amount paid by the passenger for each seat.
The effect of a downgrade on fuel surcharge is a decrease in the prices of plane tickets both in domestic and international flights, thus easing the burden on consumers and tourists.
Under Level 5, airlines are allowed to collect fuel surcharges of P151 to P542 for domestic flights while those flying outside the country will charge an additional P498.03 to P3,703.11 each.
‘If the CAB can give discounts on surcharges, perhaps other regulatory bodies of transport facilities can also take up policies that would ease the burden on commuters and tourists.’
These amounts are lower compared with Level 6 rates, which range from P185 to P665 for domestic routes and P610.37 to P4,538.40 for international flights.
The CAB has released the list of new fuel surcharges to be implemented by airlines next month, for those who are interested in how the cost of airfare is broken down.
Flights from Manila to Caticlan, Legazpi, Kalibo and Roxas will pay P238 while those going to Iloilo, Cebu, Bacolod, and Puerto Princesa, fuel surcharge will be P316.
The new surcharges for flights to Dumaguete, Tagbilaran, Surigao and Siargao will be P418 while flights to Zamboanga, Cotabato and Davao will have P487.
Passengers going to Taiwan, Hong Kong, and Vietnam will pay an additional P498.03 while those flying to China will be charged P676.20.
Rounding out the list of new fuel surcharges are P688.79 for Singapore, Thailand, and Malaysia. Indonesia, Japan, and South Korea will have P774.75; Australia and the Middle East, P1,713.68; and New Zealand and Honolulu, P2,163.32.
Since fuel surcharges are directly based on the current price of petroleum products, such as jet fuel, we are inclined to believe that the Civil Aeronautics Board is more sensitive to consumer welfare than the other government regulators involved in energy and oil products, such as the Energy Regulatory Board, the Department of Energy and the Department of Trade and Industry.
If the CAB can give discounts on surcharges, perhaps other regulatory bodies of transport facilities can also take up policies that would ease the burden on commuters and tourists.
Improved mobility of residents will result in robust business activities while cheaper travel can ramp up tourism to greater heights, thus generating thousands of jobs for our people.
