Marine Atlantic drops fuel surcharge costs, hikes base rate

A Crown corporation that provides a link between Newfoundland and Labrador and Nova Scotia is decreasing its fuel surcharge, as oil prices continue to dip.

However, Marine Atlantic will increase the base rate to accommodate "the rising costs of materials, supplies and labour and ensure a strong and reliable service for customers." 

Travellers will see a decrease by six per cent on their bill immediately, and a 2.6 per cent increase by April 1 — an overall savings in the range of 2.3 to 2.4 per cent. 

While the fuel surcharge is down, Marine Atlantic warns price hikes are possible in the future as it switches to a more expensive, environmentally friendly diesel fuel. 

"This transition will be made over the next three years through a blended fuel process, which will result in fuel costs rising until all vessels have converted to use 100 per cent marine diesel," a Marine Atlantic news release stated.

"The fuel surcharge will be continuously monitored to determine when changes are necessary as a result of these regulatory requirements."

For example, the cost for a single person to travel from Port aux Basques to North Sydney will decrease from $43.43 to $42.43. 

According to Marine Atlantic, cabin prices and security fees will remain untouched.

There are no changes to customer travel schedules this spring. However, there will be more commercial and dangerous goods crossings.