For the first time in 13 years, the average cost of travel on B.C. Ferries will effectively remain unchanged on April 1, the corporation announced Wednesday.
While fares for vehicles and passengers will rise by 1.9 per cent at the start of the new fiscal year, an increase in the fuel rebate of 1.9 per cent will offset that hike, said Dennis Dodo, B.C. Ferries’ chief financial officer. He said they would effectively cancel each other out, resulting in what is effectively no increase.
“With the continued decline in the cost of diesel oil coupled with the fact we’ve locked in the price for the majority of our fuel, we are pleased to be in a position to increase the fuel rebate which will negate the tariff increase for all of our customers,” he said. Dodo said because of the current price of fuel, the company expects to be able to maintain the rebate “for the foreseeable future.”
Ferries commissioner Gord Macatee has set price-increase caps of 1.9 per cent for each of the next four years, the lowest they have been in a decade, Transportation and Infrastructure Minister Todd Stone said in a statement.
On Sept. 16 last year, the commissioner confirmed the limited annual increase in price caps would be in effect from April 1 to March 31, 2020. The cost of reservations, assured loading tickets and the buy-in level for Experience Cards will not increase on April 1.
The current one per cent fuel rebate will increase to 2.9 per cent on that date for the major and minor routes, and a fuel rebate of 1.9 per cent will be implemented on the northern routes.
Capital replacement projects, including the need to replace one ship per year for the next 12 years, are one reason tariff increases are necessary, B.C. Ferries said.
Stone said a rebound in B.C. Ferries traffic numbers is continuing. Since last April, vehicle and passenger traffic has risen compared with the same period the year before. “With lower fuel prices and the low Canadian dollar continuing to attract American tourists, we are encouraged that this trend will continue,” Stone said.
