Carbon Tax Relief Gives BC Ferries Room to Breathe
BC Ferries is looking to smooth out future fare hikes by using savings from the recent elimination of the carbon tax. While travelers may not see immediate reductions, the move is designed to bring long-term stability for riders across the province.
Company officials confirmed that the carbon tax exemption, announced by the B.C. government earlier this year, has filled the deferral accounts with credits. These accounts normally help balance out fare fluctuations tied to volatile fuel prices.
Why Riders Won’t See Rebates Right Away
Ordinarily, once the credit balance in the account grows, BC Ferries is required to issue rebates. However, executives warn that giving refunds now could lead to sharper fare increases later.
CEO Nicolas Jimenez has projected operating costs will rise dramatically by 2029, pointing to inflation, higher fuel expenses, and aging fleet maintenance. Without changes, fares could increase by nearly 30 percent in 2028.
Proposal Sent to the Commissioner
To prevent sudden fare shocks, BC Ferries has submitted a proposal to the independent ferry commissioner. The plan requests lowering the set fuel price for the current performance term, which runs until 2028.
Chief financial officer Brian Anderson explained the company’s reasoning in a statement. By spreading the savings over both current and future terms, riders will see steadier fares instead of unpredictable spikes.
Keeping Ferry Travel Predictable
The company emphasized that what passengers pay today should remain stable over the next several years. Officials say this approach avoids dramatic swings, ensuring travel across coastal communities stays as affordable as possible despite rising expenses.
While rebates may sound appealing now, the company insists that stability will serve riders better in the long run. With the commissioner reviewing the application, the decision could shape fare planning for years ahead.
Stay tuned to SurreySpeak for more updates on BC Ferries. Stay tuned to SurreySpeak for the stories that matter most.
