Surcharge raises Canadian parcel post rates
Canada Post has quietly pumped up the price of its parcel service by tacking on a 2.25-per-cent fuel surcharge.
Canada Post spokesman John Caines said the new fee is meant to cover losses incurred due to recent hikes in the cost of gasoline.
“We have been suffering for many months with high fuel prices,” Caines said. “The fuel prices are extremely high and we have to pay these prices to move our products.”
The new fuel surcharge will adds 22 cents to a $10 package.
Caines refused to say how much revenue Canada Post expects to collect. He also would not say how much money the company is losing due to high fuel prices. Caines said the surcharge will be revised every eight weeks, and could “fluctuate” up or down according to the price of fuel. However, he added it’s highly unlikely the new surcharge will be removed, regardless of how low fuel costs may drop.
Memo: Business
Copyright Ottawa Citizen 2003
