No adjustment to fuel surcharge on plane fares – DOTr

Despite the high price of petroleum products, the government has no plans to adjust the fuel surcharge on plane fares and fares on other public vehicles.

“Wala munang increase-an kaya ‘yong fuel surcharge, sinisipat at sinisilip,” said Transportation Secretary Arthur Tugade.

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This is after Philippine Airlines (PAL) announced that the fuel surcharge needs to be reviewed.

“We’re also working with the CAB (Civil Aeronautics Board) to put some fuel surcharge for the fares. However, we’ll make sure that it’s still reasonable for passengers to fly,” said PAL President Stanley Ng.

It is only now that airlines are beginning to recover due to the gradual increase in passengers’ relaxation of travel restrictions.

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Based on the CAB matrix, there is a good chance that the fuel surcharge that airlines can impose is high.

The fuel surcharge is seen in the breakdown of the paid plane ticket, which means it is passed on to passengers.

For Cebu Pacific, it is not yet time to raise rates.

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“Our initial objective is to get people back on planes, to get them used to flying again,” said Cebu Pacific CEO Lance Gokongwei.

No adjustment to fuel surcharge on plane fares – DOTr

There are also cases where AirAsia no longer charges the fuel surcharge.

“Hindi po kami nag-implement ng fuel surcharge noong 2015,” said AirAsia Philippines CEO Ricky Isla.

“[In] 2018, we never charged fuel surcharge at this time. Medyo sa sobrang laki po ng fuel increase ngayon, we have to follow fuel guidelines,” said Isla.

This Tuesday, it again implemented a price hike on petroleum products: P8.65 per liter for diesel, P3.40 for gasoline, and P9.40 for kerosene.

According to transport group Piston, the fuel subsidy provided by the government is not enough, nor is it an effective solution.

The Department of Transportation plans to extend the free ride on MRT-3, which is currently scheduled to end at April.

Earlier, President Duterte said that the government has no control over the increase in crude oil prices.

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