Filipinos will have access to cheaper plane tickets starting next month as the government lowered the fuel surcharge that airlines may collect on top of the base fare, following the continued easing of jet fuel prices in the global market.

In an advisory on Thursday, May 28, the Civil Aeronautics Board (CAB) slashed the fuel surcharge by two notches to Level 13 for the booking period of June 1 to 15.

This is the lowest level since the CAB was left with no choice but to raise the fuel surcharge to a record Level 19 during the second half of April, when jet fuel prices nearly doubled to $190 per barrel.

Under Level 13, passengers would cough up an additional fee of ₱423 for domestic flights to nearby destinations, such as Cebu to Bacolod. The maximum surcharge is ₱1,237 for the farthest local route like Manila to General Santos.

For flights abroad, the surcharge is set at ₱1,396.74 for short-haul routes, such as Hong Kong and Taiwan. Meanwhile, the surcharge could go as high as ₱9,980.88 for long-haul flights to cities in North America, with a rate of ₱10,385.42 for longer distances.

At the current Level 15, which will remain in effect until May 31, passengers are paying as much as ₱1,436 for domestic flights and ₱12,056 for international trips.

For the first half of June, the CAB has set the applicable conversion rate at ₱61.45 per United States dollar for airlines collecting the passenger fuel surcharge.

The CAB allows airlines to collect a fuel surcharge from passengers to help them recover costs and losses resulting from spikes in fuel prices.

Under the current period of volatility, the surcharge rate is adjusted every 15 days to allow the CAB to set the allowable level based on prevailing jet fuel prices.

Jet fuel prices averaged $159.85 per barrel in the global market as of May 22, down by nearly two percent from $162.89 per barrel in the previous week, according to the International Air Transport Association (IATA).

IATA data showed that fuel prices in Asia and Oceania, which cover the Philippines, were slightly lower at $157.25 per barrel. This, however, is still far from the previous level of below $100 per barrel before the latest conflict in the Middle East erupted in the first quarter.

It remains to be seen how the increase in jet fuel prices—which prompted higher fuel surcharges—would impact passenger demand during the summer season, when flight bookings are usually at their highest.

For the first quarter, CAB data showed that total passenger volume increased by 6.6 percent to 17.04 million from 15.98 million in the same period last year, as airfares remained relatively stable during the period.