The rising cost of gas is affecting more than just drivers this summer.
On Thursday, BC Ferries announced that due to the current fuel market conditions, the company would be implementing a fuel surcharge of 1.5%.
The fuel surcharge comes in effect on June 1, 2019, and translates to an extra 25 cents for an adult and 85 cents for a vehicle on routes between Metro Vancouver and Vancouver Island.
Inter-island voyages will see an increase of 15 cents for adults and 45 cents for a vehicle.
BC Ferries also adds that fuel rebates and surcharges are nothing new to the company — they’ve been using it for years to manage the volatile price of fuel.
A fuel rebate is often introduced when the market price of fuel is lower, and a surcharge is introduced when the market price rises.
In spring of 2016, BC Ferries actually implemented a fuel rebate of 2.9% on major and minor routes. It was removed last June, also because of rising market costs.
There are also periods of time when neither a rebate or surcharge are in effect.
“Despite fuel switching and other initiatives to burn fuel more efficiently, a fuel surcharge is now necessary,” says Mark Collins, BC Ferries’ President and CEO. “Fuel is our second largest expense.”
“We know that the affordability of travel is important to our customers, and we will continue to reduce our fuel consumption further through the introduction of diesel-electric battery hybrid vessels.
The fuel surcharge will be 1.5% on average on all routes, except for Port Hardy – Prince Rupert, Prince Rupert – Haida Gwaii, and Port Hardy – Central Coast.
BC Ferries confirms that they do not benefit financially from surcharges or rebates.