Taipei, Nov. 2 (CNA) Fuel surcharges on both short-haul and long-haul international flights operated by Taiwanese airlines will increase from Nov. 8 due to a spike in international aviation fuel prices, the Civil Aviation Administration (CAA) said Monday.
In a statement, the CAA said fuel surcharges for short-haul routes will rise to US$40 from US$37.5, while surcharges for long-haul routes will rise from US$97.5 to US$104.
The CAA defines short-haul routes as destinations in Asia, excluding India and the Middle East. Long-haul routes include India, the Middle East, Europe, the Americas, Africa, Oceania and Antarctica, according to the CAA.
The higher fuel surcharges for international passenger flights followed an announcement by state-owned oil refiner CPC Corp., Taiwan earlier Monday that its reference price for international aviation fuel rose to US$183.09 per barrel this month, up from US$177.89 per barrel last month, the CAA said.
CPC updates its international aviation fuel prices on the first business day of a month.
Taiwan's fuel surcharge mechanism was introduced in 2005 after the CAA and local airlines reached an agreement to link surcharges to CPC's monthly international aviation fuel price.
Under the fuel price calculation mechanism, carriers do not impose any fuel surcharges when CPC's reference price falls below US$40 per barrel, which is the first tier of the pricing mechanism.
When the price ranges from US$40 to below US$50 per barrel in the second tier of the mechanism, carriers charge fuel surcharges of US$5 on short-haul routes and US$13 on long-haul routes.
Starting from the third tier, airlines may increase fuel surcharges by US$2.50 on short-haul routes and US$6.50 on long-haul routes for every additional US$10 increase in CPC's reference fuel price.
The CAA said it has requested carriers disclose relevant background information, such as the proportion of fuel costs in total costs or the calculation method, in an appropriate manner to ease consumer concerns about the fuel surcharge hike.
The CAA added that passengers are advised to contact airlines or visit their official websites for updated fuel surcharge information.
