BC Ferries is removing their 3.4 percent fuel surcharge effective Wednesday, December 17, 2014, thanks to the price of oil continuing 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, which is great news for holiday travellers,” says Mike Corrigan, BC Ferries’ president and CEO, in a press release. “We know that fare affordability is an issue for our customers and we are pleased to be able to reduce the cost of ferry travel, as every bit helps.”
According to the BC Ferries, the corporation expects the fuel surcharge to be eliminated until at least 2016. The fuel surcharge first came into effect in 2008. When prices fell in 2009, and 2010, BC Ferries provided a fuel rebate to customers. In 2011, BC Ferries raised its surcharge from 2.5 percent to 5 percent on it’s three major routes but eventually scrapped it in 2012.
Since the summer, oil prices have dropped 45 percent due to demand and increase in U.S. oil production.
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.