Taipei: Taiwan's airlines are set to raise their fuel surcharges on international passenger flights beginning September 7, attributed to rising aviation fuel prices, as stated by the Civil Aviation Administration (CAA) on Tuesday.

According to Focus Taiwan, the surcharge will increase to US$32.50 from the previous US$30 for short-haul routes and to US$84.50 from US$78 for long-haul routes. These adjustments come amid fluctuating fuel surcharges due to volatile international crude prices, a situation that has persisted since the United States and Israel launched attacks on Iran in late February.

Before the conflict, surcharges were set at US$17.50 for short-haul routes and US$45.50 for long-haul routes. However, they spiked to US$45 and US$117, respectively, during April and May, before declining as crude prices eased. A rebound in the past two months has prompted the latest surcharge adjustments.

Short-haul routes include destinations within Asia, excluding India and the Middle East, while long-haul routes encompass Europe, the Americas, Africa, Oceania, Antarctica, India, and the Middle East. The fuel surcharge mechanism, established by the CAA and local airlines in 2005, relies on the benchmark price of international aviation fuel announced by CPC Corp., Taiwan, a state-owned oil and gas company.

Under this mechanism, no surcharge is applied when the benchmark price is below US$40 per barrel. A surcharge begins at US$5 for short-haul routes and US$13 for long-haul routes when the price reaches US$40 but remains below US$50. For every additional US$10 increase in the benchmark price, the surcharge rises by US$2.50 for short-haul routes and US$6.50 for long-haul routes. Currently, CPC's benchmark price for international aviation fuel stands at US$156.79 per barrel.