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Canada's BC Ferries has announced that it will be lowering the fuel rebate on all of its minor routes later this month.

Effective August 17th, the fuel rebate on all its 17 minor routes will be cut from 5 percent to 2 percent on average.

BC Ferries said the decision had been made to reduce the fuel rebate on these routes due to higher bunker prices.

The fuel rebate on the three Lower Mainland – Vancouver Island and Horseshoe Bay – Langdale routes remains unchanged at 2 per cent on average.

Rising Fuel Costs

According to BC Ferries, its annual fuel costs have risen in recent years from $45.9 million in 2003 to $86.8 million in 2008.

The company's fuel costs for the 2008/09 period was calculated to be approximately $120 million.

Cleaner Fuel

Thirty-one out of the company's thirty-six ships, or 86 percent, are now burning a B5 fuel blend in all service areas where the product is available.

The B5 fuel blend is a mix of 5 per cent canola-based biodiesel with 95 per cent low sulphur petroleum diesel. Biodiesel burns cleaner with significantly less unburned hydrocarbons, carbon monoxide and particulate matter in emissions.

BC Ferries worked with its fuel supplier, Chevron, for over a year before implementing the new product in order to ensure that the safety and reliability of the vessels would not be compromised.

The Queen of Alberni, which operates on the Tsawwassen – Duke Point route, was the first vessel to trial B5 biodiesel in September 2009.