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Phividec Industrial Authority has authorized Mindanao Container Terminal to impose a fuel surcharge adjustment of 4.4% on applicable port service charges from September 8-14
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The imposition of FSA is pursuant to PIA Board Resolution No. 3894 and a Department of Transportation order authorizing port and terminal operators to implement an FSA mechanism to recover incremental operating costs caused by rising fuel prices
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The imposition of FSA started in September and done through a weekly fuel price advisory
Phividec Industrial Authority (PIA) has authorized Mindanao Container Terminal (MCT) in Tagoloan, Misamis Oriental to impose a fuel surcharge adjustment (FSA) of 4.4% on applicable port service charges from September 8-14.
The imposition of FSA, which started in September and done through a weekly fuel price advisory, is pursuant to PIA Board Resolution No. 3894 and Department of Transportation (DOTr) Department Order (DO) No. 2026-009, which authorizes port and terminal operators to implement an FSA mechanism to recover incremental operating costs caused by rising fuel prices. This is pursuant to Executive Order No. 110, which declared a state of national energy emergency due to the Middle East conflict and directed concerned government agencies to implement necessary response measures to mitigate the effects of the crisis.
Based on the latest available retail fuel price data issued by the Department of Energy for September 1-7, the prevailing retail pump price of petroleum products in Mindanao is P84 per liter. Under the approved FSA computation framework, MCT has a fuel cost component equivalent to 6.20% of its authorized tariff.
With this, MCT has been authorized to impose an FSA of 4.4% on applicable port service charges, subject to the terms and conditions prescribed under the implementing guidelines of Resolution No. 3894, according to PIA FSA Advisory No. 002. The first advisory covering September 1-7 authorized a 5% FSA.
MCT is located at the PHIVIDEC Industrial Estate, which is overseen by PIA. Mindanao International Container Terminal Services, Inc. has a concession agreement with PIA to operate and manage MCT.
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Aside from PIA, the Philippine Ports Authority (PPA) is also implementing the FSA mechanism under DO No. 2026-009 for cargo handling operators, terminal operators, and other service providers operating within ports under PPA’s jurisdiction. A similar fuel-based adjustment mechanism is also being implemented for harbor pilotage service providers operating within all PPA-administered ports and pilotage districts.— Roumina Pablo
