Which consumer services are (or are not) adding fuel surcharges as oil prices rise?
Crude oil prices rise as war continues in the Middle East hovering very high up The US$100 mark – a pressure that is beginning to weigh heavily on consumer-facing, fuel-guzzling businesses like airlines, shipping couriers and rideshare companies.
To compensate for the increase in gas prices, many of these businesses have begun adding fuel charges on top of their regular pricing. Surcharges are usually temporary, and are meant to cover changes in gas prices during volatile periods.
CBC News contacted several Canadian companies in a number of sectors asking whether they had plans to add fuel surcharges, and responses will be added to this file on an ongoing basis.
Airlines
Jet fuel is an airline’s biggest expense. In fact, an analysis by the International Air Transport Association showed that, for the week ending March 27, the weekly average price of jet fuel has touched the sky 116.8 percent compared to last year’s average.
That’s why many carriers – Canadian and international alike – have added these fees to air tickets in recent weeks. We asked some of them what kind of bumps passengers can expect.
air Canada Any impact on the price of fuel directly affects the price of all flight routes, but a spokesperson declined to comment on specifics.
During this time, Air Canada Holidays — a subsidiary that specializes in travel packages — has added a fuel surcharge of $50 per passenger to all of its warm-weather destinations, effective April 6 on all new bookings.
According to an email update sent to customers, the fee “will be reflected in sales tax and surcharges at the time of booking.”
WestJetMeanwhile, said that when fuel prices rise its fares are adjusted accordingly, but did not say what kind of increase passengers can expect.
porter airlines It has added a temporary $40 “peak surcharge” to all flights redeemed through its premium membership tier, VIPorter, it told CBC News. This change became effective on March 23 for all new VIPPorter bookings, with existing bookings unaffected.
A spokesperson said, “As soon as oil prices stabilize and return to normal levels, we plan to return to standard pricing.”
air transit said it is currently charging $50 on flight segments departing from Canada and €25 (or about $40 Cdn) on flight segments departing from Europe.
“The situation remains fluid and we are closely monitoring market movements and trends,” a spokesperson told CBC News.
Fuel prices have skyrocketed in Newfoundland and Labrador this month as a result of the ongoing war in the Middle East. And as CBC’s Laura Howells reports, residents who heat their homes with oil say it’s getting to the point where filling their tanks has become too expensive.
Rideshare and delivery
Many rideshare and food delivery companies have announced relief programs for their drivers as gas prices rise. For Canadian drivers, prices have skyrocketed since late February; The average price of gas in Canada was $1.76 per liter till tuesdayThat’s up 22 cents per liter from the same period last year, according to GasBuddy.
Doordash Introduced a program to help its drivers offset higher fuel costs. A spokesperson told CBC News that drivers will get an extra $1.50 per 50 kilometers between March 23 and April 26, up to a maximum of $36 per week.
According to the spokesperson, drivers are automatically enrolled in the program and customers will not be charged for the difference.
lift Is implemented a similar programEffective from March 27 to May 26.
a spokesperson for hop It told CBC News it is monitoring the situation, and will introduce “targeted measures to help drivers manage short-term cost pressures where needed,” while maintaining a balance with rider pricing.
uber Did not respond to request for comment.
bus and train
via rail said it had no plans to impose a fuel surcharge. American Railway Company AmtrakThe company, which operates services to and from the U.S. in Toronto, Montreal and Vancouver, did not respond to a request from CBC News.
flixbusThe long-distance bus company, which operates primarily in Ontario, Quebec and B.C., told CBC News it does not have a fuel surcharge. its competitor megabus Did not give any answer.
shipping
Shipping companies update (rather than add) ongoing fuel surcharges on a weekly basis based on the price of fuel.
canada post Between March 30 and April 5, a surcharge rate of 35 percent has been imposed for domestic services, 20.75 percent surcharge rate for international parcels and 18.75 percent surcharge rate for international packets. According to its website.
FedEx, lists fuel surcharge on its websiteWhere rates vary for intra-Canadian packages and internationally bound packages. These charges are reflected directly on the invoice.
From March 30 to April 5, the intra-Canadian rate for ground shipments and pick-up is 43.5 per cent, while the international rate for similar services is 20.5 per cent.
AboveAs of March 30, said its fuel surcharge rate The standard for service within Canada was 41 per cent – up from 24 per cent on January 1 and 28.5 per cent a few days after the war in Iran began. Regular customers will see the surcharge on their weekly bill, while the surcharge for occasional customers will be included in the fee.
Purolator Is Listed your fuel surcharge 27.5 percent from March 2 to April 5, increasing to 34.5 percent from April 6 to May 3.
