ST. JOHN’S — To offset the rising cost of fuel, Marine Atlantic has made good on its previous announcement to implement a 2 percent fuel surcharge on passenger, passenger vehicle, and commercial vehicle tariff rates.

The surcharge, which will be reflected as a .50 cent increase on a passenger ticket price and $1.50 for vehicles, will take affect July 1, 2007.

The Port Aux Basques-North Sydney service says it spent about $25 million in fuel last year and it expects that number will jump by another $500,000 during 2007.

“Marine Atlantic is monitoring fuel costs this year to date, along with anticipated fuel costs for the remainder of the year. We will review fuel costs again late in September as the need for a fuel surcharge may change on a quarterly basis,” says Roger Flood, President and CEO.

The fuel surcharge will be applied to the cost of transportation. The rates charged for other services such as accommodations and food services will not be impacted.

Customers who have confirmed their reservations prior to implementation on July 1 will not be charged the fuel surcharge.

For firms whose drivers make thousands of crossings per year, the extra fee can be difficult to absorb.

Many carriers that depend on the service say the hike couldn’t have come at a worse time as a drop in demand for shipping has put downward pressure on local rates.