Cargo airlines have announced to reduce fuel surcharge (FSC) by Rs 3 per kilogram from January 4. The decision has been taken after a drop in world oil prices after a spiral of rising for several months. Cargolux, a leading cargo airline taking Pakistani exports to Europe and USA, has announced that it has reacted to the recent decrease in world fuel prices and is pleased to adjust the FSC accordingly.

It said that effective January 4, 2005 the FSC would be reduced from Rs 21 to Rs 18 per kg. The FSC is to be applied on the chargeable weight.

The decision would bring a relief to the exporters, who had been paying extra freight in the form of duel surcharge applied by all cargo airlines operating between Pakistan and Europe, USA, and the Middle East.

The first increase in FSC by most of the airlines was made in August this year when the level of surcharge was raised from Rs 12 to Rs 15 per kg. In October the cargo airlines further raised the FSC to Rs 18 per kg, which was increased to Rs 21 per kg on November 1, 2004.

The chairman Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea), Fawad Ijaz, has welcomed the airlines move and said that it would reduce the cost of exportable items and make them competitive in the WTO free trade regime.

Copyright Business Recorder, 2005