Amid the ongoing conflict in the Middle East, crude oil prices are currently well above $100 US, putting pressure on consumer-focused businesses such as airlines, shipping companies, and ride-hailing services.
To counter the surge in gas prices, many of these companies have started implementing additional fuel charges on top of their regular rates. These surcharges are typically temporary and are designed to offset the fluctuations in gas prices during volatile periods.
Various Canadian companies in different sectors were contacted by CBC News to inquire about the implementation of fuel surcharges, with ongoing updates on responses provided.
Airlines are particularly impacted by the rising cost of jet fuel, which is a significant expense for them. The International Air Transport Association reported a staggering 116.8% increase in the weekly average price of jet fuel compared to the previous year.
Major carriers, both Canadian and international, have recently added fuel surcharges to their ticket prices. For instance, Air Canada has stated that any changes in fuel prices directly influence flight costs, without specifying details. Its subsidiary, Air Canada Vacations, has introduced a $50 per passenger fuel surcharge for warm-weather destinations on new bookings from April 6.
Similarly, WestJet adjusts fares in response to fuel price hikes, while Porter Airlines has imposed a temporary $40 peak surcharge on flights booked through their VIPorter membership tier. Air Transat is currently applying a $50 charge on flights departing from Canada and €25 from Europe.
In the rideshare and delivery sector, companies like DoorDash and Lyft have launched programs to assist drivers in covering higher fuel expenses. DoorDash drivers will receive an extra $1.50 for every 50 kilometers driven between March 23 and April 26, up to a maximum of $36 per week. Lyft has implemented a similar relief program from March 27 to May 26.
Via Rail has stated that they do not intend to introduce fuel surcharges, while US rail company Amtrak did not respond to inquiries. FlixBus confirmed no fuel surcharges, but there was no response from Megabus.
Shipping companies have been adjusting fuel surcharges on a weekly basis based on fuel prices. Canada Post, FedEx, UPS, and Purolator have all increased their surcharge rates, reflecting the impact of rising fuel costs on their services.
The ongoing conflict in the Middle East continues to drive up fuel prices, affecting various industries and prompting businesses to implement surcharges to mitigate the financial strain.