The current 1.5 per cent fuel surcharge charged by BC Ferries will be removed as of Tuesday, December 17, 2019, according to a media release from the company on Monday, December 16.
“The recent decrease in the price of fuel allows us to eliminate the fuel surcharges, which is great news for travellers,” stated BC Ferries’ vice president and CFO Alana Gallagher. “We understand that affordability is important to our customers and every bit helps.”
BC Ferries monitors the price of fuel and applies a rebate or surcharge, or neither, under a regulatory process that is independent of fares, according to the release.
Over the past 15 years, the company has been using a fuel rebate/surcharge mechanism to manage the volatility in the price of fuel. When fuel prices are lower, lower fuel prices are passed on to customers through a fuel rebate. When fuel prices are higher, a fuel surcharge is implemented specifically to cover the additional cost of fuel.
BC Ferries does not benefit financially from surcharges or rebates, the company stated in the media release.
BC Ferries has five vessels operating on liquefied natural gas, which is a cleaner and less expensive fuel than ultra-low sulphur diesel. The company also has two electric battery hybrid vessels on their way to BC. One of the new Island Class-vessels will enter service next year on the Powell River-Texada Island route.
