I THANK Mr Ong Tiong Meng for his comments in the letter, 'No reason for SIA to raise fuel surcharge' (ST, March 28).

The decision to increase the fuel surcharge is a result of a sustained escalation in jet-fuel prices in the last two months. The price of jet fuel is currently around US$76 per barrel, compared to US$67 per barrel when the surcharge was reduced in January.

The surcharge offers only partial relief of the higher operating costs arising from the increase in price of jet fuel. We base surcharges on trend prices, not headline movements. In line with jet-fuel price reductions late last year, Singapore Airlines did reduce the surcharge twice, and this recent increase merely reverses the second decrease.

It may interest Mr Ong to know that the kerosene used for heating in Japan and South Korea is not the same fuel product used in commercial aircraft.

The application of the fuel surcharge will be monitored carefully, and we will review it - upwards or downwards - based on sustained price movements.

Stephen Forshaw
Vice-President, Public Affairs
Singapore Airlines