Amid the ongoing conflict in the Middle East, the prices of crude oil have surged well above $100 in the US. This surge is putting pressure on consumer-centric businesses such as airlines, shipping firms, and rideshare companies.
To counteract the rising gas prices, many of these businesses are implementing a temporary fuel surcharge on top of their regular rates. This adjustment is aimed at managing the fluctuations in fuel costs during volatile periods.
Various Canadian companies spanning different industries were contacted by CBC News to inquire about their stance on adding or planning to introduce a fuel surcharge.
**Airlines**
Jet fuel stands out as one of the most significant expenses for airlines. Recent data from the International Air Transport Association revealed a 116.8% spike in the weekly average jet fuel prices compared to the previous year.
In response to these soaring costs, several Canadian and international airlines have included fuel surcharges in their ticket prices. Notably, Air Canada mentioned that any fuel price alterations directly impact all flight routes but refrained from providing specific details. On the other hand, Air Canada Vacations has imposed a $50 per passenger fuel surcharge on bookings to warm-weather destinations starting from April 6.
WestJet stated that they adjust fares accordingly with fuel price fluctuations but did not specify the magnitude of potential increases for passengers. Additionally, Porter Airlines introduced a temporary $40 peak surcharge for all VIPorter bookings, effective from March 23.
**Rideshare and Delivery**
As gas prices surge in Canada, several rideshare and food delivery companies have launched relief programs to assist their drivers. DoorDash initiated a program offering drivers an extra $1.50 per 50 kilometers driven between March 23 and April 26, up to a maximum of $36 per week.
Lyft has rolled out a similar relief program in the US, effective from March 27 to May 26, with inquiries ongoing regarding its implementation in Canada. Hopp is monitoring the situation to introduce targeted measures for drivers facing short-term cost pressures while balancing rider pricing.
Uber has enhanced cash-back rewards for drivers and delivery personnel using their Uber Pro Card for gas purchases. The company clarified that no fuel surcharge will be imposed on riders or increased fees on Uber or Uber Eats.
**Bus and Rail**
Via Rail confirmed no plans to introduce a fuel surcharge, while Amtrak did not respond to CBC News’ request for comment. FlixBus indicated no fuel surcharge, while Megabus did not provide a response.
**Shipping**
Shipping companies typically update fuel surcharges weekly based on fuel prices. Canada Post has implemented various surcharge rates for domestic and international services. Amazon will apply a 3.5% surcharge to fulfilment fees for Canadian sellers starting April 17.
FedEx and UPS have detailed their fuel surcharge rates, which vary by service type and destination. Purolator has also listed its fuel surcharges for specific periods, with incremental adjustments.
The ongoing conflict in the Middle East is expected to continue impacting fuel prices and subsequently the operations of various industries, prompting companies to adapt their strategies to mitigate the effects.