June 2, 2026
BC Ferries implementing temporary fuel surcharge in response to global fuel price volatility
Summary
- BC Ferries plans to implement a temporary 5% fuel surcharge on June 16, 2026, in response to sustained increases in global fuel prices
- The surcharge is intended to help manage current fuel volatility now and reduce the risk of larger fare pressures later
- Fuel pricing impacts are being driven by ongoing global geopolitical events and are separate from investments underway to improve reliability and renew the fleet
VICTORIA, BC - BC Ferries plans to implement a temporary 5% fuel surcharge beginning June 16, 2026, in response to sustained increases in global fuel prices and ongoing volatility in energy markets driven by geopolitical conflict overseas.
The temporary surcharge will apply across all BC Ferries routes and is authorized by the BC Ferry Commission under the regulatory framework established by the Coastal Ferry Act to help manage significant fluctuations in fuel costs over time.
“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 Dallyn Willis, Chief Financial Officer at BC Ferries. “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.”
Fuel is one of BC Ferries’ largest and most volatile operating costs. 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.
BC Ferries uses a fuel deferral account authorized under the Coastal Ferry Act to help smooth short-term fuel price volatility over time rather than immediately passing sudden market spikes directly onto customers. While BC Ferries has absorbed rising fuel costs in recent months, fuel prices have continued to rise sharply and remain elevated. The 5% surcharge was determined after modeling a range of fuel price and revenue scenarios and was selected as the most balanced approach to help manage sustained fuel cost pressures while minimizing impacts to customers as much as possible. Decisions on fuel surcharges are based on several factors, including how far fuel prices rise above the estimated price levels established at the beginning of the current regulatory performance term, how long elevated prices are expected to continue, and the projected balance of the fuel deferral account over time.
If fuel prices stabilize or decline for a sustained period, the surcharge will be reduced or removed. BC Ferries will continue regularly reviewing fuel market conditions and the fuel deferral account to determine whether adjustments are appropriate.
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