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The Philippine Ports Authority has issued guidelines on the computation of fuel surcharge adjustment that port operators may impose as a temporary cost-recovery measure due to the increase in fuel prices
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The guidelines under PPA Administrative Order No. 005-2026 aims to operationalize the FSA mechanism and to ensure a uniform, transparent, and auditable system for the recovery of incremental fuel costs by port operators
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It applies to PPA-registered port operators, including cargo handling operators and terminal operators, that use fuel-powered equipment and vehicles in the provision of services
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The FSA is not subject to PPA share and should not be treated as a profit-generating charge
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The FSA ranges from 0% to 20% of the approved tariff rate, depending on the fuel prices
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FSA should not be implemented without prior approval of PPA and should be separately identified in all billing statements
The Philippine Ports Authority (PPA) has issued guidelines on the computation of fuel surcharge adjustment (FSA) that port operators may impose as a temporary cost-recovery measure due to the increase in fuel prices.
The guidelines under PPA Administrative Order (AO) No. 005-2026 aims to operationalize the FSA mechanism authorized under Department of Transportation (DOTr) Department Order No. 2026-009, and to ensure a uniform, transparent, and auditable system for the recovery of incremental fuel costs by port operators. PPA is an attached agency of DOTr.
It applies to PPA-registered port operators, including cargo handling operators and terminal operators, that use fuel-powered equipment and vehicles in the provision of services.
FSA refers to a temporary surcharge expressed as a percentage of the PPA-approved tariff rate (ATR).
It is applied to recover incremental fuel cost changes, based on the Department of Energy (DOE)-published fuel prices relative to the baseline fuel price.
AO No. 005-2026 noted that the FSA is a cost-recovery mechanism strictly limited to incremental fuel cost increases and should not be treated as a profit-generating charge.
The FSA should also not be implemented without prior approval of PPA and should be separately identified in all billing statements.
Moreover, it should not form part of the base tariff or be used in computing any government share, concession fee, or similar charges.
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While no government share will be imposed by PPA, it does not exempt the FSA from other applicable taxes, including those imposed by local government units.
The guidelines under AO No. 005-2026 applies to all PPA-registered port operators, including cargo-handling operators and terminal operators, utilizing fuel-powered equipment and vehicles in the provision of port services.
Port operators should submit their application for FSA to the concerned PPA port management office, providing the proposed date of implementation.
The applicable FSA rate will be based on the latest Weekly Fuel Price Advisory issued by PPA every Monday, and no independent computation will be required.
A fuel price adjustment table is provided under AO No. 005-2026 to determine the applicable FSA rate based on DOE-published fuel prices. The FSA ranges from 0% to 20%, depending on the fuel prices.
As a sample computation provided under the AO, if the ATR for arrastre (box) is P5,429 and the DOE price is P64, which corresponds to a 3.1%, the FSA would be P168.30.
Approved FSA rates will take effect upon approval by PPA and after 24 hours from the issuance of public notice, which should be posted in port premises and/or official platforms.
Retroactive application of FSA is strictly prohibited.
PPA will conduct post-implementation audits to ensure compliance.
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AO No. 005-2026 prohibits over-recovery of fuel costs, unauthorized FSA imposition, double charging, and misrepresentation or falsification of submitted data.
Violation of AO No. 005-2026 will result in the suspension or revocation of FSA authority; re-computation and refund of excess collections; administrative sanctions under PPA rules; and referral to the Commission on Audit or the appropriate authorities.— Roumina Pablo
