BC Ferries has announced that it will be cancelling its fuel surcharge on fares beginning this Wednesday.
The 3.4 per cent surcharge will be removed due to falling oil prices worldwide, which has significantly reduced BC Ferries’ costs to purchase diesel fuel from its suppliers. Each 1 cent per litre decrease in the cost of diesel translates into a $1.2-million decrease in expenses for the ferry corporation.
Fuel surcharges were in place on all BC Ferries routes except the Port Hardy – Prince Rupert and Prince Rupert – Haida Gwaii routes.
“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,”
said Mike Corrigan, BC Ferries’ President and CEO, in a statement.
“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.”
This past fall, the ferry corporation made public its plans to acquire three new Liquid Natural Gas (LNG) powered intermediate class ferries and convert several of its large ferries into LNG powered vessels in an effort to reduce costs.
This consists of the conversion of the fleet’s two largest vessels, the Spirit of Vancouver Island and the Spirit of British Columbia, by 2018. The conversion is expected to save about $9.2-million per year over the remaining 27-year life cycle of the two vessels.
Including new vessel acquisitions, BC Ferries will be operating five LNG powered vessels in 2018.
Feature Image: BC Ferries via Shutterstock