Back to News
investment

Amazon, airlines add fuel surcharges amid high gas prices

Ben Cousins
Loading...
4 min read
0 likes
⚡ Quantum Brief
Major logistics and delivery companies, including Amazon, FedEx, and UPS, imposed new fuel surcharges in April 2026 due to soaring gas prices linked to Iran’s blockade of the Strait of Hormuz. Amazon added a 3.5% surcharge for its Fulfillment by Amazon program starting April 17, with similar fees for multi-channel fulfillment beginning May 2, impacting third-party sellers. Canada Post raised fuel surcharges to 39% for domestic shipments and 22.75% for international parcels, while FedEx and Purolator surcharges reached up to 44.5%, reflecting record gas prices exceeding $1.79 per liter. Airlines like Air Canada, WestJet, and Porter introduced temporary fuel surcharges of $50–$60 per flight, with Transat targeting Europe-bound routes, as fuel costs disrupt global aviation. Ride-share and delivery apps like Uber, Lyft, and DoorDash opted to subsidize drivers with cash-back or weekly gas allowances instead of passing costs to consumers.
AI Audio Summary
0:00 / 0:00
Click to play
99d6e805-9ff2-439c-ba4f-1232238f23dd.jpeg
Quantum News · Media Library

Packages on a conveyor belt at the Amazon.com Inc. DAB2 fulfillment center in Daytona Beach, Florida, U.S. Photo by Rodriguez Carrillo/Bloomberg filesArticle contentAmazon.com Inc. has joined other companies in adding fuel surcharges as they try to deal with high gas prices due to the war in Iran.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe e-commerce giant last week said it would apply a 3.5 per cent surcharge starting April 17 on those using the Fulfillment by Amazon program, which allows third-party sellers to use its warehouses and shipping infrastructure. Similar charges take effect on May 2 for businesses using Amazon’s “multi-channel fulfilment” program.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentCanada Post Corp. has also announced plans for higher fuel surcharges. The charges, which are updated weekly, are currently 39 per cent for domestic services and 22.75 per cent for parcels going to the United States or shipped internationally.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentFedEx Corp., United Postal Service Inc. and Purolator Inc. have all increased their fuel surcharges as well, ranging from 34.5 per cent to 44.5 per cent for domestic services.Article contentThe average price for a litre of gas reached more than $1.79 on Monday, according to the Canadian Automobile Association, up from $1.72 a week ago and $1.44 a month ago, as Iran has effectively blocked the Strait of Hormuz, one of the busiest waterways to transport oil.Article contentFuel-related charges have also crept into flight bookings.Article contentLast week, WestJet Airlines Inc. announced it was adding a temporary surcharge of $60 to reflect high fuel prices, Air Canada is adding a $50 fuel surcharge for flights through Air Canada Vacations beginning April 6 and Porter Airlines Inc. added a temporary fuel surcharge for those redeeming points for a flight.Article contentTransat A.T. Inc. was the first major Canadian airline to add a surcharge, though it is only applied on flights to Europe.Article contentArticle contentBut delivery and rideshare apps have taken a different approach to handling the high cost of fuel.Article contentRead More U.S. within 'weeks' of oil shortages if war in Iran continues: Eric Nuttall Pain at the gas pumps? That's nothing compared to the damage this fuel shock can do Article contentUber Technologies Inc. and Lyft Inc. have announced relief to drivers in the form of more cash back when using their cards for fuel.Article contentDoorDash Inc., meanwhile, is giving drivers a maximum of $36 per week to offset gas prices, though the company said costs would not be passed down to customers.Article contentWith files from National Post.Article content• Email: bcousins@postmedia.comArticle contentTrending Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans News Opinion: The world has an energy problem and Canada is the solution Energy Subscriber only. What's behind Chip Wilson's proxy war with Lululemon Subscriber only Retail & Marketing Garry Marr: With housing prices flat, the high cost of moving has never been more clear Personal Finance Amazon, airlines add fuel surcharges amid high gas prices Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans News Opinion: The world has an energy problem and Canada is the solution Energy Subscriber only. What's behind Chip Wilson's proxy war with Lululemon Subscriber only Retail & Marketing Garry Marr: With housing prices flat, the high cost of moving has never been more clear Personal Finance Amazon, airlines add fuel surcharges amid high gas prices Oil & Gas

Read Original

Source Information

Source: Financial Post

Discussion

0 professional contributions

Sign in to join this professional discussion.

Be the first to add a constructive contribution.