China will allow domestic airlines to increase their fuel surcharges by up to 25% from Monday amid surging oil prices, the China Securities Journal reported, citing a joint circular issued by the National Development and Reform Commission (NDRC), the country's economic planner, and the General Administration of Civil Aviation (CAAC). The surcharge has been raised from US$6.69 (RMB50) per passenger to US$8.03 (RMB60) for flights under 800 km, while the surcharge for longer flights has been raised from US$10.71 (RMB80) to US$13.39 (RMB100). On November 1, China raised domestic prices for petrol, diesel, and kerosene by 10%, or US$66.93 (RMB500) per ton, as crude oil topped US$96 a barrel on the global market. The hike, which narrowed the domestic fuel discount on the spot market from 25% to 17%, was expected to further boost local airlines' fuel expenses, which already accounted for 44% of their total costs in September, a CAAC source said.

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