Holiday boon as Hong Kong's air passenger fuel surcharge is cut
Fall is thanks to the collapse in the global price of oil and could mean savings for frequent flyers and Lunar New Year holidaymakers
Hong Kong's air passenger fuel surcharge has fallen to its lowest level in six years thanks to the collapse in the global price of oil, putting money in the pockets of frequent flyers and holidaymakers for the Lunar New Year getaway - if they have not yet booked their trips.
Fuel surcharges for short-haul trips booked next month will be capped at HK$81, down from HK$129 this month. For long-haul travel, the surcharge is HK$356, a cut of HK$210 from January's price.
The levy - set by the Civil Aviation Department with the proceeds going straight to the airlines to cover fluctuating aviation fuel prices - has fallen by 60 per cent since February last year. Globally, the price of oil has collapsed from over US$100 a barrel a year ago to US$45 a barrel.
The boom in shale oil has reduced America's dependence on the global market, keeping supply high and demand weak. Economic instability in Europe has further kept the price down.
David Fraser, Flight Centre's Greater China managing director, said: "For those travellers that haven't booked their Chinese New Year holidays, the great news is that fuel surcharges will be reduced for bookings made after 1 February."
Passenger fuel surcharges, which apply to most airlines operating services to and from Hong Kong, haven't fallen to similar levels since December 2009, when the global economic downturn crippled major economies. Since then, fuel surcharges have reached as high as HK$1,164 for long-haul flights and HK$253 for short-haul trips.
A spokeswoman for Cathay Pacific said: "Fuel surcharges are the simplest and most transparent way to reflect the fuel price fluctuations."
She added fuel was the airline's biggest single cost, noting: "While crude commodity prices have dropped, jet fuel prices and our into-plane prices have not been falling as much."
Motorists in Hong Kong are not seeing much benefit from the tumbling oil prices.
Fred Li Wah-ming, a Consumer Council member, said drivers were getting a raw deal. "Although now it's around HK$14 a litre for gasoline, oil prices have dropped more than the pump prices," he said.
"And the HK$6 [government] tax in that has gone unchanged for 10 years."
The Consumer Council will release a report next month into the effect of falling oil prices on motorists.
