Tag Archives: Fuel surcharge

Ferry fuel surcharge issues

The following report was just released by WSF discussing options for reducing the impact of fuel cost volatility on ferry operations:

Updated Fuel Cost Mitigation Plan Report

The notes below are from last Saturday’s FCP meeting discussing the report above as well as pending legislation calling for a fuel surcharge:

Draft Fuel Surcharge Issues:
1. With the uncertainty in the middle east and its’ [sic] impact on fuel prices, a surcharge with the stated purpose of recovering fuel budget deficits, would transfer a major state cost liability to ferry riders. An analogy would to cancel an individual’s insurance policy when it is discovered they have cancer.

2. The surcharge proposal predicts that with hedging a surcharge would seldom if ever be needed. So why have the surcharge? The administrative cost and complexity would be unwarranted for something that is rarely if ever used.
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