Ongoing conflict overseas is forcing the price of travel to go up on BC Ferries.
Beginning June 16, the ferry operator is implementing a temporary five per cent fuel surcharge across all its routes.
Sustained increases in global fuel prices and ongoing volatility in energy markets driven by geopolitical conflict overseas are behind the decision, explains a BC Ferries news release.
“Since early March, global fuel prices have increased more than 40 per cent, driven largely by instability and conflict in the Middle East and ongoing concerns related to the Strait of Hormuz,” they said.
The cost of travel for foot passengers travelling between Swartz Bay and Tsawwassen will rise from $21 to 22.05, while the cost of a standard vehicle will go up from $89 to $93.45.
“We know that any added cost matters to our customers, and we don’t take that lightly – especially for the people, communities and businesses that rely on our services every day,” said a statement from Dallyn Willis, BC Ferries’ chief financial officer.
“Like others across the province, we’re feeling the direct financial impact of high global fuel prices. We’ve used the fuel deferral account to absorb those increases for as long as possible, but given the sharp and persistent rise in these costs, we’ve reached a point where a temporary fuel surcharge is needed.
“We’re taking this step to carefully manage those pressures in the most measured, gradual and responsible way possible while fuel prices remain elevated.”
Before making this decision, BC Ferries said it had been absorbing rising fuel costs, using a fuel deferral account.
Authorized under the Coastal Ferry Act, the fuel deferral account helps smooth short-term fuel price volatility over time rather than immediately passing sudden market spikes directly onto customers.
But with fuel prices continuing to “rise sharply and remain elevated,” BC Ferries has been forced to take further action.
They said the five per cent surcharge was selected as the most balanced approach to help manage sustained fuel cost pressures while minimizing impacts to customers as much as possible.
“If fuel prices stabilize or decline for a sustained period, the surcharge will be reduced or removed,” said BC Ferries.
BC Ferries will continue to regularly review fuel market conditions and the fuel deferral account to determine whether adjustments are appropriate.