The Department of Transportation (DOTr) is slashing fees for both passengers and airlines to keep airfares affordable amid surging jet fuel prices driven by the Middle East conflict. The move comes after President Ferdinand R. Marcos Jr. said on Tuesday, March 24, that grounding planes due to a jet fuel shortage caused by the war in Iran is a “distinct possibility” for Philippine carriers.

“Several countries have already told our airlines they cannot fuel their aircraft, so they have to carry fuel there and back,” Marcos told Bloomberg. “Long haul is going to be a much more serious problem.”

Asked whether planes may inevitably have to be grounded, Marcos replied, “We’re hoping not, but it’s a distinct possibility.”

In response to rising fuel costs, and following the DOTr’s directive, the Civil Aviation Authority of the Philippines (CAAP) will reduce both aeronautical fees and the passenger service charge (PSC) at the airports it manages.

PSC, also referred to as terminal fees, are charges imposed on each departing passenger and are already included in the ticket upon booking. CAAP will reduce the PSC for international flights from ₱900 to ₱700.

Domestic passengers departing from international airports will see the charge lowered from ₱350 to a range of ₱150 to ₱200. Those flying from Principal Class 1 airports will have fees reduced from ₱300 to ₱150 to ₱200, while Principal Class 2 airports will drop from ₱200 to ₱100, and community airports from ₱100 to ₱50.

Aeronautical fees, which airlines shoulder, will be cut by nearly half—around ₱5,000 per landing—covering runways, taxiways, apron areas, and lighting systems.

CAAP Director General Raul del Rosario said these reductions aim to provide “immediate relief and support, ensuring that air travel remains accessible during these difficult times.”

These changes come after the Civil Aeronautics Board (CAB) recently raised the passenger fuel surcharge from Level 4 to Level 8 for the first half of April. Under Level 8, domestic passengers may pay an extra ₱253 to ₱787, while international travelers could see surcharges of ₱835.05 to ₱6,208.98.

The passenger fuel surcharge is optional and helps airlines recover costs from spikes in fuel prices. According to DOTr estimates, jet fuel cost approximately $89 per barrel before the Middle East conflict, which has since more than doubled to over $200 per barrel.

In a related measure, the DOTr will reduce terminal fees for vehicles carrying agricultural products aboard roll-on/roll-off (RORO) ships, where vehicles drive directly on and off the vessel, to ₱1. The reduced fees apply to Type 3 vehicles, such as light delivery trucks, vans, and pick-up trucks, and Type 4 vehicles like heavy delivery trucks. Eligible vehicles must carry raw, unprocessed agricultural goods, including grains, fruits, vegetables, fishery products, livestock, and poultry.

“The decreased RORO terminal fee will help in lowering the operating costs of owners or drivers of vehicles with agri products,” said Acting Transportation Secretary Giovanni Lopez.