BC Ferries applies for second fuel surcharge

VICTORIA — BC Ferries wants to pass on a second fuel surcharge to customers and has applied to the BC Ferry Commissioner to do so.

The ferry is looking for an additional surcharge of 2.5 percent on major routes connecting Vancouver Island to the Lower Mainland and 6 percent on all other routes.

In July, the BC Ferry Commissioner approved price cap increases of 4 percent on the major routes and 6 per cent for all other routes, even though the company has requested eight and 13 percent respectively.

Surcharges for commercial vehicles will range anywhere from 5 cents to $1.25 per foot.

“Unfortunately, the surcharge that was authorized was insufficient to cover the extraordinary increase in fuel costs that we have since experienced,” BC Ferries’ president and CEO David L. Hahn said. “After the implementation of the initial fuel surcharge, crude oil prices continued to spike above original forecasts, resulting in a further shortfall.”

The company says that the projected annual fuel costs have increased from $50 million last year to $76 million this year. Based on its six-month actual fuel costs, BC Ferries anticipates that by the end of the fiscal year, a $22 million shortfall will accumulate between the revenue generated from the initial fuel surcharge and the increased cost of fuel.

The commissioner has up to 60 days to review BC Ferries’ application.