Passengers on major routes between Vancouver Island and the Mainland will pay less now that BC Ferries is dropping its fuel surcharge.

Passengers on major routes between Vancouver Island and the Mainland will pay less now that BC Ferries is dropping its fuel surcharge.

BC Ferries ends fuel surcharge as oil falls

Extra 3.4 per cent charge eliminated as price of diesel falls, ferry corporation hedges its costs

BC Ferries is ending its 3.4 per cent fuel surcharge, effective Wednesday, in the wake of the plunge in the price of crude oil in recent months.

President and CEO Mike Corrigan cited the drop in the cost of diesel for the decision.

“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,” Corrigan said. “We know that fare affordability is an issue for our customers.”

Fuel surcharges were originally added when oil prices spiked to record levels of around $150 in 2008 and have been on and off since then, depending on fuel prices.

Oil prices have fallen nearly 50 per cent from their 2014 high of $110 but diesel prices have not fallen to the same degree.

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