Indonesia raises fuel surcharge cap by 38% in response to avtur price surge

Jakarta (ANTARA) - The government has officially raised the upper limit for fuel surcharges to 38% in response to the surge in avtur prices due to the conflict in the Middle East. This policy applies to all types of aircraft, both jet-engined and propeller-driven. Previously, the fuel surcharge cap for jet aircraft was set at 10%, while for propeller aircraft it was 25%. Accordingly, the increase in fuel surcharge for jet aircraft amounts to 28%, whereas for propeller aircraft it rises by 13%. “Previously, jet aircraft were only at 10% and propeller aircraft at 25%, now everything is adjusted to 38%,” said Coordinating Minister for the Economy Airlangga Hartarto during a press conference in Jakarta on Monday. Airlangga explained that several countries have also experienced increases in avtur prices. He cited, for example, the price of jet fuel in Thailand reaching Rp29,518 per litre and in the Philippines at Rp25,326 per litre. Meanwhile, in Indonesia, the avtur price at Soekarno-Hatta International Airport (CGK), Tangerang, has risen to Rp23,551.08 per litre. This policy is one of the government’s efforts to curb the surge in air ticket prices amid the rising avtur costs. The government targets the increase in domestic air ticket prices to remain in the range of 9-13%.