August 20, 2025
BC Ferries Submits Proposal to Spread Carbon Tax Savings and Keep Fares Stable
VICTORIA, BC - Today, BC Ferries submitted a proposal to the BC Ferries Commissioner to use savings from the elimination of the provincial carbon tax to help offset future fare pressures, ensuring every dollar goes back to customers in a way that helps to keep ferry travel costs more stable, predictable, and affordable.
“If the Commissioner approves our proposal, it will allow us to use the carbon tax savings in a way that helps maintain consistent fares for customers,” said Brian Anderson, Chief Financial Officer at BC Ferries. “By spreading the savings over a longer period of time, it enables us to keep fares steadier and give people more certainty when planning their travel.”
BC Ferries uses fuel deferral accounts, approved and overseen by the Commissioner, to protect the company’s exposure to fluctuating fuel prices on operating costs and, in turn, maintain rate stability for customers. The account collects the difference between the “set price” for fuel and the actual price paid. If prices drop, the account holds the savings until prices rise, or they are returned to customers; if prices rise, it covers the shortfall to prevent sudden spikes. Over time, this smooths out price changes, so customers aren’t exposed to sudden swings. All funds are tracked separately, reported monthly, and returned to customers under the Commissioner’s oversight.
The current set price for fuel was approved in September 2023, based on market forecasts at the time that included the carbon tax. With the tax removed on April 1, 2025, the actual price BC Ferries pays for fuel is now below the set price.
Through this proposal, BC Ferries is asking the Commissioner to adjust the set price so these savings can be spread evenly over the coming years. This approach helps offsets fuel price fluctuations and other anticipated cost pressures, avoiding a short-term drop which may be followed by a sharper increase later.
The BC Ferries Commissioner, who operates independently from both BC Ferries and government, will review the proposal and make a determination that balances the interests of ferry users, tax payers and the financial viability of the corporation as required under the Coastal Ferry Act.
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