Filipinos planning to book their next local or foreign getaway can expect lower airfares starting next month, as the government reduced the fuel surcharge to its lowest level yet since the conflict in the Middle East erupted.

In an advisory dated June 26, the Civil Aeronautics Board (CAB) said it has lowered the surcharge to Level 9 for the period of July 1 to 15, down three notches from the current Level 12.

Under Level 9, passengers may pay an additional fee of ₱287 for flights to nearby local destinations, such as from Cebu to Bacolod.

For domestic destinations, the extra surcharge could be as high as ₱839 for the most distant routes like Manila to General Santos.

Meanwhile, the surcharge is set at a minimum of ₱947.39 for short-haul international flights to popular tourist destinations such as Hong Kong, Taiwan, and Vietnam.

For long-haul routes to destinations such as North America, the United Kingdom, and the Netherlands, the additional charge is set at ₱6,708.83.

The latest fuel surcharge level is the lowest the CAB has approved since the United States (US) and Israel launched attacks on Iran in late February, triggering a dramatic surge in jet fuel prices.

At one point, the fuel surcharge rose to a record Level 19 in the second half of April, when passengers paid as much as ₱1,834 for domestic routes and up to ₱15,397.15 for international flights.

The decline in the fuel surcharge coincides with the easing of jet fuel prices, as signs that the Middle East conflict could soon end have become increasingly evident.

The latest monitoring by the International Air Transport Association (IATA) showed that the average global price of jet fuel dropped to $119.17 per barrel, down by nearly a quarter from the previous month’s average.

Within the Asia and Oceania region, which includes the Philippines, fuel prices are even lower at $115.72 per barrel.

The CAB allows airlines to impose a fuel surcharge to help them recoup fuel costs and minimize financial losses caused by surging fuel prices.

Currently, the regulator adjusts the monitoring period for the surcharge level every 15 days to provide greater flexibility in setting rates based on prevailing jet fuel prices. Prior to this, fuel surcharge is usually adjusted very month.

For the first half of July, the CAB has set the conversion rate at ₱60.99 per US dollar for airlines collecting the surcharge in foreign currencies.