Marine Atlantic ticket cost to increase despite low oil prices

The drop in oil has led some companies to lower their fuel surcharges, but Marine Atlantic is telling the public not to expect them to do the same.

With gas prices at a three-year low, some delivery costs have been going down. Canada Post and UPS have both lowered their fuel surcharges on deliveries as a result of the low price of oil.

Marine Atlantic, the company that runs the ferry services between Newfoundland and Nova Scotia, hastold the public that their ticket prices will actually be going up.

Marine Atlantic spokesman, Darrell Mercer, said the company is in the midst of switching from using bunker C fuel, to a blend of bunker C and diesel, which is more expensive.

"Once we do our due diligence and switch over fully to a 100 per cent diesel, that's a more expensive fuel so we are going to be spending more in fuel," he said.

"Unfortunately from that perspective the cost is going to have to be passed along to customers."

Ferry operators in North America and Europe are required by international regulations to lower sulphur emissions by 2018, and that means Marine Atlantic will slowly start blending bunker C with diesel until itmakes the switch to complete diesel in by 2018.

"While we recognize that customers want to see a reduction, we also have to balance our requirements under regulations that govern vessels in North America and Europe," said Mercer.