BC Ferries eliminates fuel surcharge as oil prices fall
Latest surcharge introduced January 2014 to be eliminated on Wednesday
BC Ferries has announced it is eliminating its 3.4 percent fuel surcharge effective Wednesday, Dec 17 as the price of oil continues 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," said BC Ferries President Mike Corrigan Monday in a news release.
"We know that fare affordability is an issue for our customers"
BC Ferries said the corporation expects the fuel surcharge will be eliminated for at least a year-and-a-half.
In January 2014 when it implemented the latest surcharge, the corporation said every one percent increase in the price of a litre of fuel translated at that time into a $1.2 million increase in expenses.
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.