The new fuel surcharge that takes effect on B.C. Ferries' Langdale -Horseshoe Bay route today (Aug. 1) is fair, said the lead number cruncher for the Southern Sunshine Coast Ferry Advisory Committee (FAC).
"I'm satisfied it's a realistic assessment of fuel prices over the last five months, and that the fuel surcharge is fair," said Jakob Knaus of the 9.2 per cent increase, which translates into a $1 increase for passengers, and a $3.05 increase for cars. Knaus submitted his suggestion for the required surcharge to the ferry commission in late June.
So far during performance term two (PT2), which is B.C. Ferries' four-year timeframe over which fare increases are planned, no fuel surcharges have been added to the ticket price. However, a set surcharge of roughly $0.80 per litre of fuel was embedded into the ferry fare when PT2 began on April 1, 2008.
Recent stats from the B.C. Ferry Commission show the ferry corporation was paying about $1.20 per litre of fuel in May 2008, meaning a shortfall of about $0.40 per litre.
Route three is expected to go through about 7.4 million litres of fuel in the first year of PT2, meaning a total debt of $2.96 million. According to Knaus' figures, this means a fuel surcharge of about 9.25 per cent is required in order to break even.
The surcharge was scheduled to be reviewed in the fall, but the ferry commission amended the schedule in light of higher than expected fuel costs - a move Knaus said will also capitalize on peak revenues from tourist traffic in August.
FAC chair Ed Steeves called the 9.2 per cent increase a result of "the continual hounding that our group has done," and singled out Knaus efforts with praise.
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