Amid rising prices, BC Ferries to remove fuel rebate later this month

Due to rising global fuel prices, BC Ferries is removing fuel rebates later this month.

Fuel rebates of 2.9 per cent for the major and minor routes and 1.9 per cent for the northern routes have been in place since the spring of 2016.

That works out to 50 cents for an adult fare and a $1.70 for a vehicle on the routes connecting Metro Vancouver and Vancouver Island. On minor routes, it will work out to 30 cents for adults and 70 cents for a vehicle.

BC Ferries said it uses rebates and surcharges to manage price volatility in the fuel market, adding a surcharge when fuel prices spike and offering a rebate when fuel prices drop.

“The company does not benefit financially from the mechanism,” BC Ferries said in a statement.

The rebates will end on June 27.

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With fuel prices on the rise, BC Ferries have been in discussions with the provincial government about how to balance costs.

Last month, Transportation Minister Claire Trevena managed to convince BC Ferries to leave prices alone by offering up more money to offset rising fuel costs.

At the time, Trevena sent a letter to the corporation noting that the government had committed to freezing fares in its latest budget, and removal of the rebate threatened that promise.

“During the last week, I was surprised and disappointed to learn that BC Ferries was going to announce publicly the removal of the fuel rebates of 2.9 percent on the major and minor routes and 1.9 percent on the northern routes, less than two months after government’s fare reduction strategy was put into place,” Trevena wrote in the letter.

“As minister, I am personally committed to delivering on our government’s promise to freeze fares. As I expressed to you, I believe this action is contrary to that.”

— With files from Kylie Stanton