As the ongoing conflict in the Middle East persists, crude oil prices remain significantly above the $100 US threshold, impacting consumer-centric industries such as airlines, shipping companies, and rideshare services.
To counter the surge in gas prices, many businesses have started implementing fuel surcharges on top of their regular rates. These surcharges are temporary measures designed to offset fluctuations in gas prices during uncertain periods.
Canadian companies spanning various sectors were contacted by CBC News regarding their stance on implementing fuel surcharges, with ongoing updates to be included in this report.
Jet fuel stands out as a major expense for airlines. Recent data from the International Air Transport Association revealed a staggering 116.8% surge in the average weekly jet fuel price compared to the previous year’s figures. Consequently, many airlines, both Canadian and international, have introduced fuel surcharges on ticket prices to adapt to the escalating costs.
Air Canada noted that any fuel price fluctuations directly impact flight route pricing, without providing specific details. Its subsidiary, Air Canada Vacations, has rolled out a $50 per passenger fuel surcharge for warm-weather destinations on new bookings since April 6.
Similarly, WestJet stated that fare adjustments are made in response to rising fuel costs, without specifying the extent of potential increases for passengers.
Porter Airlines disclosed a temporary $40 “peak surcharge” on flights booked through VIPorter, effective from March 23 for new bookings, with existing reservations unaffected. The airline plans to revert to standard pricing once oil prices stabilize.
Air Transat is currently levying a $50 surcharge on flights departing from Canada and a €25 (approximately $40 CAD) surcharge on flights departing from Europe. The airline emphasized the need for continued monitoring of market movements due to the volatile situation.
In the rideshare and delivery sector, companies have initiated relief programs to assist drivers coping with escalating gas prices. DoorDash is offering drivers an additional $1.50 per 50 kilometers driven between March 23 and April 26, up to a maximum of $36 per week, at no extra cost to customers.
Lyft has introduced a similar relief program effective March 27 to May 26. Hopp is monitoring the situation closely and will introduce targeted measures to support drivers facing short-term cost pressures while maintaining a balance with rider pricing.
Uber has enhanced cash-back rewards for drivers and delivery personnel using the Uber Pro Card for fuel purchases, without imposing fuel surcharges or increasing other fees on Uber or Uber Eats for riders.
Via Rail confirmed no plans for a fuel surcharge, while Amtrak did not respond to inquiries. FlixBus stated it does not have a fuel surcharge, whereas Megabus did not provide a response.
In the shipping sector, companies adjust ongoing fuel surcharges weekly based on fuel prices. Canada Post has applied varying surcharge rates for domestic and international parcels. Amazon is implementing a 3.5% surcharge on Fulfillment by Amazon fees for Canadian sellers starting April 17.
FedEx and UPS have updated their fuel surcharge rates, reflecting the increased costs of fuel. Purolator has also adjusted its fuel surcharge rates to align with the evolving market conditions.
The escalation in fuel prices due to the Middle East conflict continues to have a profound impact on various industries, prompting businesses to implement strategic measures to address cost pressures.