B.C. Ferries says it is implementing a five per cent fuel surcharge on all of its routes beginning June 16, as the spiking cost of fuel continues to make a dent in consumers’ wallets.
The ferry authority said in a statement that the elevated price of fuel, driven by the U.S.-Israel war on Iran and the subsequent closure of the critical Strait of Hormuz, has meant it has had to absorb rising costs in recent months.
While a “fuel deferral account” allowed it to not immediately pass those costs onto ferry commuters, B.C. Ferries says the surcharge was necessary given that gas prices remain elevated.
It said the five per cent surcharge represented the “most balanced approach to help manage sustained fuel cost pressures while minimizing impacts to customers,” and it would be reduced or removed if fuel prices decline for a sustained amount of time.
“We know that any added cost matters to our customers, and we don’t take that lightly — especially for the people, communities and businesses that rely on our services every day,” said B.C. Ferries chief financial officer Dallyn Willis in the statement.
According to the ferry authority, surcharges are authorized by the B.C. Ferry Commission under frameworks established by the Coastal Ferry Act.
It said that any decisions on implementing surcharges are based on a number of factors — including how much fuel prices rise, how long the prices were expected to stay high and the “projected balance of the fuel deferral account over time.”
How decisions made about B.C. Ferries 30 years ago led to problems today
B.C. Ferries’ annual fare hike has already gone into effect for the summer, with an average hike of 3.2 per cent that began on April 1.
A number of businesses across Canada — including shipping services and airlines — have implemented fuel surcharges in recent months due to the elevated cost of fuel caused by the war in the Middle East.
