As the conflict in the Middle East persists, prices for crude oil are staying significantly above the $100 US threshold. This situation is starting to impact businesses that heavily rely on fuel, such as airlines, shipping companies, and ride-sharing services.
To counter the surge in gas prices, many of these businesses are introducing a fuel surcharge on top of their regular rates. These surcharges are typically temporary and are intended to offset fluctuations in gas prices during unstable periods.
CBC News has contacted various Canadian companies across different industries to inquire about their plans regarding fuel surcharges, and updates will be added continually.
**Airlines:**
Jet fuel is a major expense for airlines, with the International Air Transport Association reporting a staggering 116.8% increase in the weekly average price of jet fuel compared to the previous year. Consequently, many airlines, both Canadian and international, have implemented fuel surcharges on ticket prices.
– Air Canada stated that any changes in fuel prices directly impact flight costs but declined to provide specific details.
– Air Canada Vacations has added a $50 per passenger fuel surcharge for warm-weather destinations on new bookings starting from April 6.
– WestJet adjusts fares in response to fuel price hikes but did not disclose the expected passenger cost increases.
– Porter Airlines introduced a temporary $40 “peak surcharge” on all VIPorter flights, effective from March 23 for new bookings.
– Air Transat is currently charging $50 on flights departing from Canada and €25 (approximately $40 CAD) on flights departing from Europe.
**Rideshare and Delivery:**
With gas costs on the rise, several rideshare and food delivery companies are rolling out relief programs for their drivers. Canadian gas prices have surged since the end of February, with an average of $1.76 per liter as of the latest data.
– DoorDash is offering its drivers an additional $1.50 per 50 kilometers driven between March 23 and April 26, capped at $36 per week.
– Lyft has initiated a similar relief program from March 27 to May 26.
– Hopp is monitoring the situation and will introduce targeted measures to support drivers facing increased costs.
– Uber has increased cash-back rewards for drivers using their Uber Pro Card for gas purchases, without imposing fuel surcharges on riders.
**Bus and Rail:**
Via Rail confirmed no plans for implementing a fuel surcharge, while Amtrak did not respond to CBC News’ inquiry. FlixBus does not currently have a fuel surcharge, and Megabus did not provide a response.
**Shipping:**
Shipping companies typically adjust ongoing fuel surcharges weekly based on fuel prices. Various companies have introduced fuel surcharges for their services during this period.
– Canada Post has implemented surcharge rates for domestic and international services.
– Amazon is applying a 3.5% surcharge to fulfillment fees for Canadian sellers.
– FedEx and UPS have increased their fuel surcharge rates for shipping services within Canada and internationally.
– Purolator has updated its fuel surcharge rates for courier services.
By closely monitoring market movements, companies are adapting to the fluctuating fuel prices to navigate the current economic climate.
