Monday, May 20, 2019 ~ BC
~ West Shore Voice News
BC Ferries will implement a fuel surcharge of 1.5% starting June 1.
The company says it closely monitors the cost of fuel. The apply a rebate or surcharge (or neither) under a regulatory process that is independent of fares.
On the Metro Vancouver-Metro Victoria routes (Tsawwassen-Swartz Bay) the surcharge will means 85¢ more for a vehicle and 25¢ more per adult in the vehicle. On inter-island routes the boost is 15¢ for an adult and 45¢ for a vehicle on most routes.
Over the past 15 years, BC Ferries says it has been using a fuel rebate/surcharge mechanism to manage the volatility in the price of fuel. When fuel prices are lower, BC Ferries passes lower fuel prices on to customers through a fuel rebate. When fuel prices are higher, BC Ferries applies a fuel surcharge to cover the additional cost of fuel. There have also been periods with neither rebate nor surcharge in place. The company does not benefit financially from surcharges or rebates.
Five BC Ferries vessels now operate using liquefied natural gas (LNG), which is a cleaner and less expensive fuel source than the ultra-low sulphur diesel as used for their other vessels. LNG is approximately 50% less expensive than diesel, and its use results in fuel savings that are passed on to customers.
BC Ferries’President and CEO Mark Collins said in a news release this week: “Despite fuel switching and other initiatives to burn fuel more efficiently, a fuel surcharge is now necessary. Fuel is our second largest expense. We know that the affordability of travel is important to our customers, and we will continue to take measures to reduce our fuel consumption further through the introduction of diesel electric battery hybrid vessels.”
On average, the fuel surcharge will be 1.5% on all routes with the exception of the Port Hardy – Prince Rupert, Prince Rupert – Haida Gwaii and Port Hardy – Central Coast routes. Those routes have a separate mechanism pertaining to the cost of fuel and there will not be a fuel surcharge added at this time.
Caring for the environment, coupled with travel affordability are top priorities for BC Ferries, the corporation stated in their surcharge announcement news release on May 16. “Good fuel cost management has helped hold the cost of travel flat or reduced it every year for the past four years,” it was stated.
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This article was first published on page 4 of the May 17, 2019 print-PDF edition of West Shore Voice News. | Become a digital subscriber to West Shore Voice News (premium or permalink).