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Vietnam’s Civil Aviation Authority has proposed a temporary and flexible domestic jet fuel surcharge mechanism for domestic passenger transport, aiming to help airlines manage sharp Jet A-1 price swings triggered by the Middle East conflict.
In a memorandum submitted to the Ministry of Construction, the authority said the Middle East conflict, which began in late February 2026, has pushed Jet A-1 fuel prices higher. It noted that Jet A-1 prices in Asia exceeded 200 USD per barrel within two weeks, representing a gain of more than 100% compared with the period before the escalation.
The regulator described the volatility as reflecting a serious supply shock and emphasized the aviation sector’s high sensitivity to geopolitical and broader macroeconomic developments. It added that fuel prices remain elevated with no signs of cooling, continuing to pressure airlines’ operating costs.
To respond to adverse fuel price movements, the Civil Aviation Authority proposed considering a domestic passenger surcharge as an urgent, flexible, and temporary measure.
Based on reference calculations, for a two-hour flight, the surcharge on some international routes could reach about 1.1 million VND per leg when fuel prices remain high.
The authority also provided a specific estimate for the Hanoi–Ho Chi Minh City leg, saying the surcharge would be about 311,000 VND per leg under the same high-price conditions.
The Civil Aviation Authority argued that the surcharge mechanism would provide flexibility and could be implemented quickly after authorization. It said the measure could be adjusted or withdrawn as market conditions change, helping limit longer-term effects on price levels and the consumer price index.
The authority noted that there is currently no specific legal regulation on fuel surcharges. It therefore asked the Ministry of Construction to report to the government to consider enacting a resolution as the legal basis for implementation, and to guide implementation with an emphasis on transparency and enhanced supervision.
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