British Columbia Sun

Customers are annoyed as Canada Post’s fuel tax hits 31 percent

Nova Scotia

Key takeaways: 

  • Fuel taxations for carriers like Canada Post and UPS have surged amid skyrocketing gas prices.
  • Its fuel taxes are far higher, rising to 31 percent for domestic services as of May 2.

Carl Markwart sent a small package from Surrey to Vancouver Island last weekend. Later, when he sat down to look at the bill, he was surprised to see an extra $4 charge attached.

“I saw the fuel taxation thereof $4.07 on a $13.12 parcel, a sum of $18.05,” he informed CBC News.

“That’s a 31 percent fuel tax. I was surprised to see how high it was … it’s just another instance of firms taking more cash out of people’s pockets.”

In the possibility of Canada Post, its fuel taxes are far higher, rising to 31 percent for domestic services as of May 2, leading clients like Markwart to ask why there’s such a difference.

“I just see it hard to swallow,” he said.

Also read: Real estate deceleration could get more certainty to the B.C. market, experts say

he was surprised to see an extra $4 charge attached

The answer dates back to a last global battle that also pushed up the cost of fuel more than 30 years before.

Industry-standard

In 1990, oil prices skyrocketed following the Iraqi attack on Kuwait, leading to the eventual American-led military intervention anointed the Gulf War. Iraq and Kuwait are among the planet’s primary oil-producing nations.

The war had volatile energy markets that became expensive for shipping firms and freight carriers that usually operated at a flat rate.

The answer was to raise fuel taxes that fluctuate with the cost of fuel, said Dan Duckering, the president of Fuelwise, an Alberta-based fuel taxation service.

Source – cbc.ca

Show More

Leave a Reply

Your email address will not be published.