News: BC Ferries eliminates fuel surcharge as oil prices fall

Latest surcharge introduced January 2014 to be eliminated on Wednesday

CBC - December 15, 2014

BC Ferries has announced it is eliminating its 3.4 percent fuel surcharge effective Wednesday, Dec 17 as the price of oil continues to fall.

"With the current favourable market conditions, we have been hedging our diesel fuel costs and are now in a position to eliminate the fuel surcharge," said BC Ferries President Mike Corrigan Monday in a news release.

"We know that fare affordability is an issue for our customers"

BC Ferries said the corporation expects the fuel surcharge will be eliminated for at least a year-and-a-half.

BC Ferries first added fuel surcharges in 2008, but gave customers a rebate when fuel prices fell in 2009, and 2010.

In 2011, BC Ferries raised its surcharge from 2.5 per cent to five per cent on the three major routes connecting Metro Vancouver and the Island before scrapping it again in 2012.

In January 2014 when it implemented the latest surcharge, the corporation said every one percent increase in the price of a litre of fuel translated at that time into a $1.2 million increase in expenses.

The price of oil has fallen more than 45 percent since the summer due to only moderate demand and an increase in U.S. oil production.

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