The Philippine government has ordered reductions in passenger service charges at CAAP-operated airports while negotiating fertilizer imports with China.
The conflict in the Middle East is impacting fuel prices and fertilizer supplies, leading the Philippine government to take significant actions regarding airport charges and agricultural imports.
Recently, the Philippine government ordered reductions in passenger service charges and airport navigation charges at airports operated by the Civil Aviation Authority of the Philippines (CAAP). This directive, however, excludes privately operated airports, including Manila Ninoy Aquino International, Angeles City Clark International, Cebu, and Panglao.
In a related development, the Civil Aeronautics Board has raised the passenger fuel surcharge to Level 8 for the period of April 1 to 15, 2026. This marks an increase from the previous level of 4, with domestic surcharges now ranging from PHP253 to PHP787 (approximately USD4 to USD13) and international surcharges increasing to PHP835 to PHP6,209 (USD14 to USD104).
In the agricultural sector, the Department of Agriculture is actively negotiating with China to secure fertilizer imports, as China has been closed since August of last year for fertilizer exports. The ongoing conflict has specifically affected fertilizer supplies in Qatar and Saudi Arabia, which are critical sources for the Philippines.
Roger Navarro, a representative from the Department of Agriculture, stated, “As we speak now, the Secretary is talking to the Ambassador of China.” He emphasized the need for the Philippines to diversify its sources of international fertilizer, particularly urea or nitrogen-based fertilizers.
The Philippines currently sources nitrogen-based fertilizers from various countries, including Brunei, China, Indonesia, Saudi Arabia, Malaysia, Qatar, and Vietnam. However, the ongoing conflict has led to a reduction in available supplies, with 108,000 metric tons of fertilizer affected in Qatar alone.
Urea, a nitrogen-based fertilizer, is particularly fuel-dependent and has been impacted by rising fuel costs. The Department of Agriculture is also pursuing sustainable alternatives, including organic fertilizers and smart-farming technology, to mitigate these challenges.
As the situation develops, observers will be closely monitoring the outcomes of the negotiations with China and the impact of the increased surcharges on both domestic and international air travel.
