Ministry of Transport increases maximum air transport fuel surcharge to 40 per cent
The Ministry of Transport has adjusted the maximum limit for the fuel surcharge (FS) of domestic scheduled commercial air transport to 40 per cent, following an increase in avtur (aviation fuel) prices and periodic evaluations of national flight tariffs.
“The 40 per cent figure represents the maximum limit, meaning air transport companies can still set the fuel surcharge below this maximum in accordance with their business strategies and market conditions,” said the Director General of Civil Aviation at the Ministry of Transport, Lukman F. Lagsa, in Jakarta on Wednesday.
The Directorate General of Civil Aviation periodically evaluates fuel surcharge policies based on developments in aviation fuel prices set by fuel providers.
Evaluations are conducted by referring to the national average avtur price and the price ranges established in regulations.
Based on the publication of avtur prices set by aviation fuel providers as of 1 September 2024, the average avtur price was recorded at Rp23,315 per litre, representing an increase of approximately 6.5 per cent compared to the previous period.
Taking these avtur price developments into account, the maximum FS that air transport companies can apply to economy class passenger fares is now 40 per cent of the upper fare limit for the respective service group, up from the previous maximum of 30 per cent.
This adjustment of the maximum limit is part of the government’s evaluation policy regarding flight tariff components, while still considering fuel price trends, the operational sustainability of air transport companies, and the interests of the public as air transport users.
The Directorate General of Civil Aviation will continue to supervise the implementation of flight tariffs, including the FS component, to ensure they are carried out transparently, accountably, and in accordance with statutory regulations.
Supervision is conducted through the monitoring of tariffs imposed by airlines, developments in avtur prices, and the compliance of air transport companies in listing the fuel surcharge component separately on passenger tickets.
The Ministry of Transport monitors and supervises the implementation of tariffs by all air transport companies to ensure they remain competitive, taking into account market conditions and public purchasing power.
Lukman added that the Ministry of Transport continues to monitor avtur price developments and conduct evaluations to ensure that flight tariff policies continue to support national connectivity and the sustainability of the aviation industry.
“As well as providing benefits to the public as users of air transport services,” said Lukman.