June 15, 2005

(Letter to the editor of the Vancouver Province)

I would like to comment on Al Peters' June 15th story, "Fuel surcharge is another tax." His logic that fuel surcharges should go down if the price of a barrel of crude were to gown down is exactly the case at Canada Post.

Effective April 2003, Canada Post implemented a fuel surcharge based on the average price of Regular Unleaded gasoline as measured by MJ Ervin and Associates, an independent company that monitors fuel prices in Canada. Each month the fuel surcharge is reviewed and adjusted as the average price changes. Adjustments are made up or down, depending on the average Regular Unleaded gasoline price.

A fuel surcharge rate scale is listed on our web site at www.canadapost.ca indicating the trigger points for the rise or fall of the fuel surcharge.

Sincerely,

John Caines
Manager, National Media Relations
Ottawa (613) 734-7675