March 11, 2008

(Letter sent to the editor of the Edmonton Journal)

Dear Editor:

I would like to respond to the March 11 letter from Vi Cunningham, "Why a fuel surcharge?"

Canada Post delayed the implementation of a fuel surcharge longer than any of the other major parcel service providers. However, the continued escalation of fuel prices forced Canada Post to implement the fuel surcharge April 7, 2003. The fuel surcharge is 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.

The volatility of fuel prices makes it increasingly difficult to manage costs. And since Canada Post has the largest transportation fleet in the country, every increase in the cost of fuel has a major impact on our operational costs. A modest surcharge helps to recover some of our fuel related costs.

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
National Media Relations
Canada Post
613-734-7675