Aviation fuel surcharges are to increase for a second consecutive month as oil prices continue to climb, the Civil Aviation Administration (CAA) said yesterday.
The surcharge would rise to US$32.50 from US$30 for short-haul flights, and to US$84.50 from US$78 for long-haul flights, with the new prices taking effect on Monday next week, it said.
The CAA and Taiwanese airlines in 2005 jointly established a fuel surcharge mechanism based on state-run CPC Corp, Taiwan’s (台灣中油) benchmark international jet fuel price. No surcharge applies below US$40 per barrel. Between US$40 and US$50, the surcharge is US$5 for short-haul routes and US$13 for long-haul routes, rising by US$2.50 and US$6.50 respectively for every US$10 increase in fuel prices.
Photo: Wu Liang-yi, Taipei Times
CPC’s benchmark price for international aviation fuel is currently at US$156.79 per barrel, up from US$147.57, moving from 12th to 13th pricing tier.
It would be the agency’s fifth surcharge adjustment this year. In April, surcharges for short-haul and long-haul flights were raised to US$45 and US$117 respectively as oil prices soared on the back of the conflict in the Middle East.
The surcharges dropped to US$35 and US$91 for short-haul and long-haul flights respectively in June and further to US$27.5 and US$ 71.5 in July as oil prices fell.
Last month, fuel surcharges reversed up to US$30 and US$78 as oil prices rebounded.
The agency has asked airlines to provide clear information on their official Web sites about the surcharge, including fuel costs as a percentage of total operating costs and the calculation method, to address consumer concerns.
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