In the ongoing Middle East conflict, crude oil prices are currently well above $100 in the US market, impacting consumer-oriented businesses such as airlines, shipping companies, and rideshare services. To counter the surge in gas prices, many of these businesses have begun implementing temporary fuel surcharges on top of their regular rates to mitigate the effects of fluctuating fuel costs.
Various Canadian companies across different industries were contacted by CBC News to inquire about their plans or actions regarding fuel surcharges amid the current situation. Airlines, being heavily reliant on jet fuel, have seen a significant spike in costs. According to the International Air Transport Association, the average jet fuel price has surged by 116.8% compared to the previous year.
Air Canada stated that fuel price fluctuations directly impact flight costs but did not provide specific details. Its subsidiary, Air Canada Vacations, has introduced a $50 per passenger fuel surcharge for warm-weather destinations on new bookings from April 6 onwards.
Similarly, WestJet adjusts fares in response to fuel price hikes but did not disclose the expected passenger cost increases. Porter Airlines imposed a temporary $40 “peak surcharge” for VIPorter flights, effective from March 23 for new bookings. Air Transat is currently charging $50 for flights departing from Canada and €25 for flights departing from Europe.
In the rideshare and delivery sector, companies like DoorDash and Lyft have initiated relief programs to assist drivers with rising fuel expenses. DoorDash drivers will receive an additional $1.50 per 50 kilometers driven between March 23 and April 26, up to $36 per week. Lyft has a similar relief program in place from March 27 to May 26.
Via Rail confirmed no plans for a fuel surcharge, while U.S. rail service Amtrak did not respond to inquiries. FlixBus stated no fuel surcharge implementation, whereas Megabus did not provide a response.
Shipping companies are adjusting existing fuel surcharge rates on a weekly basis based on fuel prices. Canada Post, Amazon, FedEx, UPS, and Purolator have introduced varying fuel surcharges to offset increased operational costs due to rising fuel prices. These surcharges are reflected in service fees and invoices to cover the additional expenses incurred.