Chinese airlines raise fuel surcharges on domestic flights

Chinese airlines began to raise their fuel surcharges on domestic flights on Sunday, as the Middle East conflict drives up jet fuel costs.

The fuel surcharge will be set at 60 yuan (about 8.7 U.S. dollars) for flights of 800 kilometers or less, and 120 yuan for longer flights.

The new standards were set based on a circular on adjusting base price for aviation kerosene under a mechanism linking fuel surcharges for domestic flights and aviation kerosene prices released by the National Development and Reform Commission and the Civil Aviation Administration.

Economists attribute this move to the surge in global crude oil prices.

"Following our generally accepted practice, fuel costs account for 30 to 40 percent of the total costs of civil aviation companies. Affected by these [rising oil prices], it's an international common practice that airlines adjust fuel surcharges," said Zhong Shan, chief economist of the Air Transport Research Institute of the China Academy of Civil Aviation Science and Technology.

For tickets on domestic flights sold on or before April 4, even if their dates are changed to be on or after April 5, no additional fuel surcharges will be made.

Previously, Chinese airlines levied a fuel surcharge of 10 yuan on domestic routes of 800 kilometers or less, and 20 yuan on routes exceeding 800 kilometers.

Chinese airlines raise fuel surcharges on domestic flights

The price of diesel fuel is surging worldwide after the Strait of Hormuz was blocked, disrupting global shipping and driving up the cost of goods. As of early April, the per-barrel price of diesel in Europe has exceeded 200 U.S. dollars for the first time since 2022.

In Britain and France, fuel prices are now 30 percent higher than they were when the U.S. and Israel launched attacks on Iran on February 28.

The British motoring organization Royal Automobile Club (RAC) finds that the Netherlands has the most expensive diesel in Europe, at more than 2.8 U.S. dollars per liter.

Ireland, Spain, and Romania have temporarily cut the excise duty on diesel.

In Southeast Asia, Cambodia's diesel price has more than doubled since the outbreak of the Middle East conflict, with a liter now priced at 2.03 U.S. dollars.

Meanwhile, Myanmar's Ministry of Finance and Revenue has announced a temporary tax exemption on imports of high-speed diesel in a bid to stabilize and lower commodity prices, the state-owned daily The Global New Light of Myanmar reported on Thursday.

The United States is also facing the consequences of its military actions in Persian Gulf region, with diesel futures rising 11 percent to nearly 112 dollars per barrel in Texas on Thursday, after U.S. President Donald Trump announced continued military actions against Iran.

Countries see record fuel prices amid Strait of Hormuz disruptions