LETTER: Fuel rebates here for ferry users

Re: Letter “Ferries profit from fuel costs,” February 16

Re: Letter “Ferries profit from fuel costs,” February 16

B.C. Ferries has just announced an increase in fuel rebates due to the current lower cost of fuel, which will offset the April 1, 2016 tariff increase.

There will be no increase in the cost of ferry travel this spring, which is good news for ferry travellers.

But I wanted to take the opportunity to clarify the facts regarding tariff increases and the cost of fuel for B.C. Ferries, which were raised in a recent letter to the editor in the Saanich News.

Every four years, the B.C. Ferries Commissioner sets price caps for B.C. Ferries based on financial forecasts. These forecasts include the best estimates for operating expenses which include a forecast fuel price, referred to as the “set price.”

Many years ago, the provincial government recognized the risk of fluctuations in fuel prices and the potential impact on B.C. Ferries and its customers. As a result, the Commissioner established fuel deferral accounts to allow surcharges and rebates. This allows B.C. Ferries to manage the financial risks associated with volatile and unpredictable fuel prices by using fuel deferral accounts and a surcharge and rebate mechanism.

The fuel surcharge/rebate mechanism is separate from the tariff calculation and any fuel rebate or surcharge is strictly a pass through to the fuel deferral accounts. B.C. Ferries does not profit from lower fuel costs.

While B.C. Ferries actively manages expenditures, tariff increases are necessary to cover operating costs and major capital replacement projects. The company needs to replace one ship per year for the next 12 years in order to maintain safe, efficient and reliable service at an estimated cost of approximately $3 billion. This is the reason why tariff increases are necessary.

Dennis DodoChief Financial OfficerB.C. Ferry Services

 

 

 

Just Posted

Russell Books marks opening of new location by setting Guinness World Record

Store stacks world record books more than six metres high

Outrigger canoe teams race over two days to raise money for men’s health initiatives

WetDashe for men’s health highlights benefits of year-round sport on the West Coast

Heritage Haunted House rakes in more than $10,000 to help fill children’s dreams

Spooky fundrasier has been scaring community for 13 years

Northbound lanes re-open along Malahat after small rockslide near Goldstream

Drivers asked to use caution, clean-up crews have finished on-site

Oak Bay girls net senior volleyball Island championship

Claremont Secondary clams second place as both teams head to Provincials

Teen with cancer whose viral video urged Canadians to vote has died, uncle tweets

Maddison Yetman had been looking forward to voting in her first federal election since junior high school

Greater Victoria 2019 holiday craft fair roundup

Get a jump on your holiday shopping

POLL: Do you support CUPE workers in their dispute with School District 63?

SD63 schools to remain closed as strike continues Tuesday

Stelly’s Stingers book ticket to provincial championships

Senior girls volleyball team places second at Island Championships

Cleanup in the works after tanker truck fire leads to oil spill in B.C.’s Peace region

The province said the majority of the spilled oil likely burned away in the fire.

Fisherman missing near Lake Cowichan’s Shaw Creek

Family is asking for everyone and anyone to keep their eyes open,… Continue reading

BC VIEWS: Action needed on healthcare workplace violence

While we’ve been talking about it, the number of B.C. victims has only grown

Closing arguments begin in B.C. case launched in 2009 over private health care

Dr. Day said he illegally opened the Cambie Surgery Centre in 1996 in order to create more operating-room time

MacLean says “Coach’s Corner is no more” following Cherry’s dismissal from Hockey Night

Cherry had singled out new immigrants in for not honouring Canada’s veterans and fallen soldiers

Most Read