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The Queen of Oak Bay makes its way into Horseshoe Bay ferry terminal on Oct. 26, 2013.

John Lehmann/The Globe and Mail

BC Ferries has announced that a 3.4 per cent fuel surcharge that came in the midst of three consecutive years of fare increases will be eliminated starting Wednesday.

Ferries president Mike Corrigan says favourable market conditions mean the charge that began mid-January is no longer necessary.

The former Crown corporation added the surcharge on all but northern routes, saying an increase in the cost of fuel meant the extra cost could remain in place for more than a year.

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BC Ferries says it still has an outstanding balance in its fuel deferral account, but the remainder continues to drop and forecasts indicate the balance will be reduced to zero in the first half of 2015.

The removal of the charge will bring the cost of ferry travel down by varying amounts, depending on the destination and how people get there.

Foot passengers sailing between the Gulf Islands will pay 20 cents less, while a family of four travelling by car between Vancouver and Victoria will save $3.25 each way.

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