Truckers using the B.C. Ferry system can expect to pay 3.5 percent more than the current fare come Jan. 17.
B.C. Ferries stated Thursday they're hiking fares for all customers by 3.5 percent on most routes in order to cover the rising cost of diesel fuel.
"We are well aware that implementing a fuel surcharge is unpopular with our customers, and we are doing everything we can to keep our fuel costs as low as possible, including building new ships with LNG capability," said Mike Corrigan, president and CEO of B.C. Ferries.
Corrigan said that every one-cent increase in the price of a liter of fuel means a $1.2 million increase in company expenses. And while the company has reduced its fuel consumption by 5.8 million liters since 2004, the cost of fuel in 2013 was $121 million, up from $50 million in 2004.
In determining maximum average fares for the current four-year performance term, the Commissioner set a regulatory price for fuel of $0.952 per liter. But B.C. Ferries is currently paying about $0.14 more per liter than the Commissioner-approved fuel price. In November 2013, monthly fuel prices reached a new high of $1.09 per liter.
"Market pricing indicates that the price differential will continue throughout the year," Corrigan said.
"We have waited as long as we can to implement a surcharge, however we must act now as it is clear that fuel prices are unlikely to decline in the foreseeable future."
