IT STARTS SLOWLY AND SPREADS: Are fuel surcharges in our future?

I filled my car with gas in Toronto yesterday for a whopping $106.87. That’s a first – and it was a shock. So, then it’s not much of a surprise that even people who travel short distances  in Atlantic Canada are feeling the pinch of rising fuel prices. The region’s largest taxi company – Casino Taxi, in Halifax – has imposed a $1.30 fuel surcharge on each fare to help compensate drivers.

The question now is – how quickly will that spread across the country and how soon we will see fuel surcharges tacked onto air travel and cruises.

Undoubtedly some airlines have oil hedges that will help partially offset the price increase, but many carriers don’t ,and while there might be a reluctance to jack prices while travellers are only just beginning to shake off pandemic fears and head for their long awaited holidays or business trips, do not bet against surcharges looming in the not so distant future.

Maritime Bus has also imposed a fuel surcharge for its intercity routes, but owner Mike Cassidy says he’s trying to keep rates down to encourage people to use his buses.

He says many residents are addicted to their personal cars, but he says he expects more people to use buses to travel within the Atlantic region if fuel prices continue to rise.

Casino Taxi president Brian Herman says the surcharge is paid directly to the drivers, who are facing fuel prices approaching $2 per litre. He says the surcharge will be removed after Halifax city council approves a rate increase, which is expected in the coming weeks.

So that’s the alternative. A higher rate or a fuel surcharge. Six of one, half a dozen of the other…

As for me, I had a function to attend last evening. Typically, I would hop in the car take the 15 minute drive and pay whatever atrocious parking fee is most convenient to my location. However, my new, more responsible self used my presto card on the subway and walked the 5 minutes to the event. Let’s see how long this new improved sensible self will last.