❓WHAT HAPPENED: Chinese airlines are increasing fuel surcharges on domestic flights due to rising oil prices.
👤WHO WAS INVOLVED: Air China, China Southern, Xiamen Airlines, Spring Airlines, Juneyao Airlines, Cathay Pacific
📍WHEN & WHERE: Starting Sunday, across China
🎯IMPACT: The Islamic Republic of Iran’s ongoing disruption of oil tanker and other shipping traffic through the Strait of Hormuz has wreaked havoc on fuel and energy prices across Asia, with many nations imposing strict rationing measures.
Continued volatility in Asian energy markets is forcing several Chinese airlines to raise fuel surcharges on domestic flights. Air China, China Southern, and Xiamen Airlines announced that, starting Sunday, all domestic flights within a 500-mile radius will have a 60 yuan (~$8.70) surcharge added to each ticket. For longer flights, passengers will have to pay a 120 yuan (~$17.40) surcharge.
Several other Chinese airlines, including Spring Airlines and Juneyao Airlines, subsequently announced they would also increase surcharges to offset rising fuel prices. Notably, Hong Kong’s Cathay Pacific recently raised its fuel surcharge by 34 percent.
The National Pulse reported in mid-March that the Islamic Republic of Iran’s ongoing disruption of oil tanker and shipping traffic through the Strait of Hormuz has wreaked havoc on fuel and energy prices across Asia. Countries like Vietnam, China, Taiwan, Japan, and South Korea are being hit especially hard by disruptions to oil tankers passing through the strait.
In response to the energy supply crunch, many Asian nations have imposed strict rationing measures. China, which accounted for 80 to 90 percent of Iran’s oil sales, has been forced to increase its price cap on gasoline and diesel.
Meanwhile, in an address to the nation on the evening of April 1, U.S. President Donald J. Trump stated that the U.S. military operation against Iran, which commenced a month ago, has nearly achieved its core objectives, but added that there will be two to three weeks of more military activity. During his speech, President Trump emphasized the responsibility of other nations, particularly those reliant on oil passing through the Strait of Hormuz, to ensure their own security.
Join Pulse+ to comment below, and receive exclusive e-mail analyses.