BC Ferries intends to offset future fare pressures with savings from the elimination of the provincial carbon tax, it announced Aug. 20. That, however, will not bring fare reductions to customers; savings will instead be passed on gradually and predictably if its to the BC Ferries Commissioner is approved.
"In other words, what you鈥檙e paying today will stay consistent 鈥� avoiding sudden ups and downs tied to fuel prices 鈥� helping keep travel more affordable over the long term," explained BC Ferries spokesperson Ritinder Matthew.
BC Ferries uses fuel deferral accounts to keep fares stable when fuel prices fluctuate. The commissioner establishes a "set price" for fuel every few years, and if BC Ferries pays more than that set price, they can add a fuel surcharge to fares. If they pay less, they eventually must give passengers a fuel rebate.
There are currently no fuel surcharges in place, Matthew said.
The current Performance Term 6 fuel price, set in September 2023, covers April 1, 2024, to March 31, 2028. The set price was originally created with the assumption that BC Ferries would be paying for fuel plus the carbon tax.
But now that the B.C. government eliminated the carbon tax on fuel in 2025, the deferral account has filled up with credits. By the rules, once the credit balance gets too big, BC Ferries must give riders a rebate on fares.
However, in its application to the commissioner, BC Ferries warned that the rebate would backfire later due to overall operating costs rising between 2029-2032 (PT7).
The company is projecting significant cost increases in the coming years, with CEO Nicolas Jimenez anticipating a 30 per cent fare increase would be needed in 2028 to cover expenses related to fuel, inflation and maintaining an aging fleet.
"A near-term fuel rebate that reflects the elimination of the carbon tax will, all else equal, serve to increase the jump in fares that ferry users will experience in the transition from PT6 to PT7," BC Ferries said in its application. "BC Ferries submits that these abrupt changes to fares will reduce fare predictability and stability for BC Ferry users."
Instead, BC Ferries is requesting that the commissioner, who operates independently from both BC Ferries and government, lower the set price for fuel in PT6 so that the benefit is spread evenly across PT6 and PT7.
鈥淚f the commissioner approves our proposal, it will allow us to use the carbon tax savings in a way that helps maintain consistent fares for customers,鈥� said Brian Anderson, chief financial officer at BC Ferries, in a press release. 鈥淏y spreading the savings over a longer period of time, it enables us to keep fares steadier and give people more certainty when planning their travel.鈥�
