- Transport Secretary Arthur Tugade prefers fuel subsidy over higher fuel surcharges to help the aviation industry cope with high jet fuel prices
- Philippine Airlines earlier sought higher fuel surcharge from the Civil Aeronautics Board
- Cebu Pacific said it will stick to the passenger fuel surcharge matrix adopted by CAB
- Tugade said he will request Congress to approve a budget for fuel subsidy for the aviation and shipping sectors, similar to what is being done currently for the road sector
Transportation Secretary Arthur Tugade prefers to provide fuel subsidy for the aviation sector rather than approve higher fuel surcharges amid the continuing increase in fuel prices.
In a media interview on March 29, Tugade said the Department of Transportation will request Congress to approve a budget for fuel subsidy for the aviation and shipping sectors, similar to what is being done currently for the road sector.
Higher fuel surcharges, he said, will only be passed on to travellers and will be inflationary.
Tugade said he is open to asking President Duterte to call a special session in Congress to request the fuel subsidy. Congress is on a break until May 23 due to the elections.
Philippine Airlines earlier said it was seeking a higher fuel surcharge from the Civil Aeronautics Board (CAB) as rising fuel prices, exacerbated by the Russia-Ukraine war, have heavily impacted the aviation industry.
Cebu Pacific said it won’t be asking for a higher surcharge but will abide by CAB’s passenger fuel surcharge matrix.
Currently airlines may impose passenger fuel surcharges under Level 4 of CAB’s Policy Resolution No. 46 (Passenger Fuel Surcharge for Domestic and International Flights) from March to April 2022. Level 4 is the highest surcharge rate airlines may charge since CAB in July 2021 announced reimposition of the surcharge following increases in the price of jet fuel.
The next surcharge level for May to June, to be determined based on the two-month average of jet fuel Mean of Platts Singapore priced in its peso-per-liter equivalent, will be announced on April 15.
The Air Carriers Association of the Philippines in a Lower House ad hoc committee meeting on March 7 said they support a reduction or even non-increase of government-imposed fees and charges to help mitigate effects of rising fuel prices on operations.
