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Domestic airlines set to cut fuel surcharges

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Passengers will find it cheaper to fly because Chinese airlines may cut fuel surcharges on domestic routes as jet fuel prices decline.

The National Development and Reform Commission cuts ex-factory jet fuel price to 7,277 yuan (US$1,150) a ton from 7,501 yuan from September 1.

The National Development and Reform Commission cuts ex-factory jet fuel price to 7,277 yuan (US$1,150) a ton from 7,501 yuan from September 1.

The National Development and Reform Commission (NDRC), the top economic planning body, will cut ex-factory jet fuel price to 7,277 yuan (US$1,150) a ton from 7,501 yuan from today. This is set to benefit airlines as they will be able to buy jet fuel at cheaper prices from the China National Aviation Fuel Group Corp, the country's jet fuel supplier, media reported yesterday.

The reduction will be the third time this year for the surcharge to be trimmed since the NDRC began adjusting ex-factory price for jet fuel monthly from August 1 to better reflect fluctuations in global oil prices.

Analysts said the fuel surcharges on domestic routes may be cut by between 20 yuan and 30 yuan in the coming days due to the cheaper fuel prices.

Airlines now charge a 140-yuan surcharge on routes longer than 800 kilometers while the surcharge on other routes is 80 yuan.

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