Taipei: Fuel surcharges on short-haul and long-haul international flights operated by Taiwanese airlines are set to increase from August 9, following a sharp rise in international aviation fuel prices, the Civil Aviation Administration (CAA) announced Monday.

According to Focus Taiwan, the CAA detailed that surcharges for short-haul routes will rise to US$30 from US$27.50, while those for long-haul routes will increase to US$78.00 from US$71.50. This change follows CPC Corp.'s announcement that its reference price for international aviation fuel rose to US$147.57 per barrel this month, up from US$133.29 per barrel last month.

The CAA noted that CPC updates its international aviation fuel price on the first business day of each month. Short-haul routes are defined as destinations in Asia, excluding India and the Middle East, while long-haul routes encompass India, the Middle East, Europe, the Americas, Africa, Oceania, and Antarctica.

Taiwan's fuel surcharge mechanism was established in 2005 after an agreement was reached between the CAA and local airlines. The mechanism links surcharges to CPC's monthly international aviation fuel price, with no surcharges imposed when the reference price is below US$40 per barrel.

When prices range from US$40 to just below US$50 per barrel, airlines are permitted to charge surcharges of US$5 on short-haul routes and US$13 on long-haul routes. Beyond this, surcharges may increase by US$2.50 on short-haul routes and US$6.50 on long-haul routes for every additional US$10 increase in the reference fuel price.

The CAA has instructed local carriers to clearly disclose the surcharge increases to passengers and travel agencies to avoid disputes. Market estimates indicate that fuel accounts for approximately 40 percent of airlines' operating costs.