Americas News
Savings From Carbon Tax Elimination Could Support Fare Stability: BC Ferries
Canada's BC Ferries has submitted a proposal to the BC Ferries Commissioner seeking approval to apply savings from the April 2025 removal of provincial carbon tax toward stabilising fares over the coming years.
This would help to keep ferry travel costs more stable and predictable, it said in a statement on its website on Wednesday.
The company is proposing that these savings be spread over several years rather than applied immediately, in order to shield passengers from future cost pressures.
"If 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," Brian Anderson, CFO at BC Ferries, said.
"By 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."
BC Ferries manages fuel costs through deferral accounts overseen by the Commissioner.
These accounts track the difference between the approved set price for fuel and the actual price paid.
When fuel costs are lower, the savings are stored and later used to offset higher prices, helping to keep fares steady and avoid sudden increases.
"The current set price for fuel was approved in September 2023, based on market forecasts at the time that included the carbon tax, it said.
"With the tax removed on April 1, 2025, the actual price BC Ferries pays for fuel is now below the set price."
The Commissioner will review the proposal and decide on the best approach under the Coastal Ferry Act.
