As It Happens

Oil crashed so why do we still have fuel surcharges?

When the price of oil was $140 a barrel, companies introduced fuel surcharges to offset the loss to their profits. Now that oil is closer to $30, some are questioning why we still have fuel surcharges at all?
(Jonathan Hayward/CP)

It was a charge that Canadians found tacked on to plane tickets, trucking services, and even Canada Post parcel delivery. And when crude oil was hovering around a $140 a barrel, it made some sense.

It underscore the need for those companies that do have those fuel surcharges to better explain themselves- Dan McTeague

But as the price of oil has dropped to record lows, some fuel surcharges have not fallen with it.

And that has former Liberal MP, and energy-market watcher, Dan McTeague crying foul.

"It underscore the need for those companies that do have those fuel surcharges to better explain themselves," he tells As it Happens.  

An Air Canada passenger jet takes off from Halifax in this file photo. (Andrew Vaughan/CP)

Air Canada is still charging customers a fuel surcharge. The airline says they have to lock in their fuel prices, sometimes years in advance, and they are passing those costs onto consumers.

Listen to our interview with McTeague to hear why he doesn't think Air Canada's claim is accurate. 

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