TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsAirlines renew call to raise fare cap as jet fuel prices jump 70%
The government is taking a cautious policy approach as INACA presses the urgent need to adjust the airfare cap to reflect a jump in avtur prices of over 70 percent as a result of the Middle East crisis.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A Pertamina tanker truck pumps bioavtur J2.4 into a CN235-220 turboprop plane on Sept. 6, 2021, for a ground test at an identified airfield in Bandung, West Java, in this handout photo. (Courtesy of Pertamina)
T
he Indonesia National Air Carriers Association (INACA) has renewed its call to increase the fuel surcharge and airfare cap (TBA), following the decision of state-owned energy giant Pertamina to raise domestic jet fuel prices as of April 1 by an average 70 percent compared with the month prior.
The association had previously proposed a 15 percent hike for both the fuel surcharge and the fare cap. As the prices of jet fuel, or aviation turbine fuel (avtur), have risen more sharply than anticipated, however, INACA is now seeking further adjustments in line with the latest hike.
At Soekarno-Hatta International Airport in Tangerang, for instance, avtur prices for domestic flights have increased from Rp 13,656.51 (81 US cents) per liter in March to Rp 23,551.08 per liter in April, a jump of 72.45 percent.
Jet fuel prices for international flights have also surged, rising 80.32 percent from 74 cents to $1.34 per liter.
Read also: Airlines push for 15% fuel surcharge, fare cap hike as costs soar
INACA chairman Denon Prawiraatmadja said the association had anticipated the jump in avtur prices as part of the global economic fallout from the fuel supply disruption due to the Iran war.
“As we projected previously, avtur prices will rise following global trends due to the geopolitical crisis in the Middle East. Therefore, we urge the government to immediately adjust the fuel surcharge and domestic airfare ceiling,” Denon said on April 2.
