Higher prices for passengers as BC Ferries drops fuel tariffs

Taking the ferry in B.C.is about to get more expensive as fuel prices continue to rise.

On Tuesday, BCFerriesannounced it's removingfuel tariffs as of June 27.

Therebate and surcharge mechanism is currently used to manage the unpredictable rise and fallof fuel prices,but BCFerriessaid it doesn't make money that way.

Corporation president Mark Collins saidthe company has had surcharges, rebatesand periods with neither over the last 14 years.

When the tariffs are gone, the added costs will vary depending on the trip but on major routes,passengers will be charged an extra 50 cents and it will be $1.70 more for a vehicle.

Province'disappointed' by move

The removal comes two months after the province announced $59 million in new funding as part of itsfare reduction strategy.

Transportation Minister Claire Trevenawrote a letter to the corporationsayingshe was disappointed to have heard about BC Ferries rebate plans in May.

On Tuesday, she reiterated her frustration.

"[The province] recently entered discussions with the company with hopes of a solution. However, an agreement could not be reached," Trevenasaid.

"People along the coast deserve to be able to travel affordably," she added.

The minister said the province is conducting an operational review of BC Ferries to "ensure the service works" for people in B.C.

Collins saidthe company knowsaffordability is important to passengers and that it uses fuel deferral accounts and hedgingto help reduce the impact on fluctuating fuel prices.

Read more from CBC British Columbia

With files from CBC News