BC Ferries announced today the current 1.5 per cent fuel surcharge will be removed as of December 17, 2019. BC Ferries closely monitors the price of fuel and applies a rebate or surcharge, or neither, under a regulatory process that is independent of fares.
Over the past 15 years, BC Ferries 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. There have also been periods with neither. The company does not benefit financially from surcharges or rebates.
“The recent decrease in the price of fuel allows us to eliminate the fuel surcharges, which is great news for travellers,” said Alana Gallagher, BC Ferries’ Vice President and CFO. “We understand that affordability is important to our customers and every bit helps.”
BC Ferries now 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 B.C. These new Island Class vessels will enter service next year on the Powell River – Texada Island and Port McNeill – Alert Bay – Sointula routes. BC Ferries recently ordered four more of the electric battery hybrid ships, which will go into service in 2022. Caring for the environment, coupled with travel affordability are top priorities for BC Ferries.