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NT Bureau
Chennai, Mar 24:

        As a result of a sustained escalation in the price of jet fuel in the past two months, Singapore Airlines will increase its fuel surcharge for tickets issued on or after 1 April 2007. The new levels reinstate those applied prior to the reduction applied in January: For flights between Singapore and Kuala Lumpur, Bandar Seri Begawan, Bangkok, Denpasar, Hanoi, Ho Chi Minh City, Jakarta, Manila and Penang, the surcharge is $18 while

        flights between Singapore and gateways in the US and Canada on a single-sector basis will cost $82 and $54 per sector, on all other flights.

        The new surcharge is subject to official approval in some markets, and some local variations may apply where regulatory approvals dictate. The adjustments will offer only partial relief of higher operating costs arising from recent increases in the price of jet fuel.

        The price of jet fuel is now around $76 per barrel, compared to $67 per barrel when the surcharge was last revised in January. The steep rises come after a moderate downward movement in late 2006 and January 2007, during which Singapore Airlines correspondingly reduced the surcharges twice.

        Further, the gap between the price of jet fuel and the price of crude oil has remained wide, at close to 30 percent, where historically the gap was much smaller. This differential is driven by high demand for jet fuel.

        Singapore Airlines will continue to monitor the price of jet fuel and keep the application of the fuel surcharge under active review.