Last Updated On 7 April 2026, 7:02 PM EDT (Toronto Time)
Canadians are bracing for higher costs on nearly everything from airline tickets to online shopping as a wave of fuel surcharges sweeps across the country.
The ongoing conflict between the United States, Israel, and Iran has triggered what energy analysts describe as the largest supply disruption in the history of global oil markets.
With Iran effectively blocking the Strait of Hormuz since early March 2026, roughly 20 percent of the world’s crude oil has been cut off from reaching global markets.
This unprecedented energy crisis is now hitting Canadian wallets hard as airlines, shipping carriers, and online retailers scramble to offset skyrocketing fuel costs through new surcharges and price increases.
Gas prices across Canada have already surged past the two-dollar-per-litre mark in several provinces, with experts warning that more pain is likely on the way.
Businesses continue passing elevated costs directly to consumers through a complex web of surcharges affecting virtually every sector of the economy.
This comprehensive guide outlines all the new and existing fuel surcharges Canadians need to know about, along with detailed breakdowns by province and service type.
Table of Contents
New Fuel Surcharges in Canada Coming in April 2026
Several major companies have announced brand new fuel surcharges set to take effect throughout April 2026.
These additional charges represent the latest wave of price increases directly tied to the Iran conflict and its devastating impact on global energy supplies.
WestJet Companion Voucher Surcharge Starting April 8
WestJet is introducing a temporary 60 dollar fuel surcharge on all companion voucher bookings starting Wednesday, April 8, 2026.
This surcharge applies to customers using companion vouchers earned through the WestJet RBC World Elite Mastercard or through elite status in the WestJet Rewards program.
The airline explains that while regular airfares can be adjusted multiple times daily based on market conditions, companion vouchers have fixed pricing that cannot absorb rising fuel costs.
Bookings made before April 8 will not be affected by this new surcharge.
WestJet is also reducing its flight capacity by approximately one percent in April and three percent in May by consolidating routes with lower demand.
The airline stated that fuel represents the largest contributor to airline operating costs, making the temporary surcharge necessary to manage the recent surge in fuel prices.
Most affected customers have been provided with accommodation options due to the flight consolidations.
Amazon Fulfillment Surcharge Starting April 17
Amazon will begin charging a 3.5 percent fuel and logistics surcharge on fulfillment fees for third-party sellers in Canada and the United States starting April 17, 2026.
This surcharge applies to sellers using Fulfillment by Amazon services and will expand to Multi-Channel Fulfillment and Buy with Prime services on May 2, 2026.
On average, this equates to approximately 26 cents per unit for Canadian sellers, though the exact amount varies based on item size and dimensions.
While consumers will not see this surcharge directly on their Amazon orders, sellers are likely to pass these increased costs through higher product prices.
Amazon noted that it has absorbed increased fuel and logistics costs until now, but persistent elevated costs across the industry require implementing temporary surcharges.
The surcharge is calculated based on fulfillment fees rather than the sale price of items, which Amazon states makes it meaningfully lower than surcharges applied by other major carriers.
Air Canada Vacations Sun Destinations Surcharge
Air Canada Vacations implemented a 50 dollar per passenger fuel surcharge on all warm-weather vacation packages starting Monday, April 6, 2026.
This fixed surcharge affects bookings to popular sun destinations in Mexico, the Caribbean, and parts of the United States.
The fee appears in the taxes and surcharges section at the time of booking and applies to all new reservations made on or after the effective date.
The airline’s vacation subsidiary noted that this surcharge mostly reflects the increased cost of ground packages, though fuel costs affect all components of vacation packages.
Flair Airlines Carrier Surcharge effective April 6
Flair Airlines implemented a variable carrier surcharge on all flight bookings effective Monday, April 6, 2026.
The low-cost carrier displays this surcharge transparently during the booking process so customers understand what they are paying and why.
Domestic round-trip flights carry a surcharge of approximately 40 dollars, while international routes such as Calgary to Puerto Vallarta carry surcharges of around 60 dollars.
Flair stated that like all airlines, it operates in a dynamic cost environment with fuel representing a significant and volatile expense.
Summary of New April 2026 Fuel Surcharges
| Company | Surcharge Amount | Effective Date | Applies To |
| WestJet | $60 flat fee | April 8, 2026 | Companion vouchers |
| Amazon Canada | 3.5% of fulfillment fees | April 17, 2026 | FBA sellers |
| Air Canada Vacations | $50 per passenger | April 6, 2026 | Sun destination packages |
| Flair Airlines | $40 to $60 variable | April 6, 2026 | All flight bookings |
| Purolator | 34.5% | April 6, 2026 | All courier shipments |
Fuel Surcharges That Already Came In Effect Across Canada
Beyond the new surcharges coming this month, several fuel surcharges are already impacting Canadians across shipping, courier, and airline services.
These surcharges have been climbing steadily since the Iran conflict began on February 28, 2026.
Shipping companies typically update their fuel surcharges on a weekly basis to reflect current diesel prices, meaning rates can change significantly from one week to the next.
Canada Post Fuel Surcharge Details
Canada Post has implemented significantly higher fuel surcharges that are updated weekly based on diesel prices measured by an independent fuel price monitoring company.
For the week of April 6 to 12, 2026, Canada Post is charging the following fuel surcharges on parcel services:
| Service Type | Fuel Surcharge Rate |
| Domestic Services (Priority, Xpresspost, Expedited, Regular Parcel) | 39.00% |
| U.S. and International Parcel Services | 22.75% |
| U.S. and International Packet Services | 20.75% |
These rates represent substantial increases from pre-conflict levels when domestic surcharges typically ranged between 25 and 30 percent.
The surcharges are applied to the base shipping rate plus applicable service charges, meaning the actual dollar amount varies depending on package weight and destination.
Canada Post updates fuel surcharges every Monday, with new rates posted on its website a few days in advance.
FedEx Canada Fuel Surcharge Details
FedEx Canada updated its fuel surcharge tables effective April 6, 2026 for all Express and Ground services.
The surcharges apply to FedEx Express intra-Canada services, FedEx Ground intra-Canada services, Canadian export and import shipments, and Canada-to-U.S. Ground services.
During the week of March 30 to April 5, FedEx charged 43.5 percent for intra-Canadian ground shipments and pickups, with international rates at 20.5 percent.
These rates are adjusted weekly based on diesel fuel prices published by Natural Resources Canada, an independent government agency.
FedEx also applied a 50 cent per pound surcharge on parcel and freight shipments from the U.S. to dozens of countries in the Middle East, South Asia, and Africa.
Shipments coming from those regions to North America carry an even higher 70 cent per pound fee reflecting elevated security and logistics costs.
UPS Canada Fuel Surcharge Details
UPS Canada operates an index-based fuel surcharge system that adjusts automatically every Monday based on the national average diesel price.
As of late March 2026, the fuel surcharge rate for standard service within Canada reached 41 percent.
This represents a dramatic increase from 24 percent at the start of January 2026 and 28.5 percent shortly after the Iran war began.
Regular UPS customers see the surcharge itemized on their weekly invoices while occasional shippers have it included in their quoted charges at the time of shipping.
The fuel surcharge applies to the net package rate plus a list of applicable accessorial charges, including additional handling, delivery signatures, and residential delivery fees.
Purolator Fuel Surcharge Details
Purolator listed its fuel surcharge at 27.5 percent from March 2 to April 5, 2026.
Starting April 6, the surcharge increased significantly to 34.5 percent and will remain in effect through May 3, 2026.
Unlike carriers that adjust weekly, Purolator sets its fuel surcharge monthly based on the four week average diesel price as reported by Natural Resources Canada.
Changes to Purolator’s fuel surcharge rate take effect on the first Monday of each month, with updates posted on its website approximately two weeks in advance.
The surcharge applies to all courier shipments regardless of destination or selected mode of transportation.
Porter Airlines VIPorter Surcharge
Porter Airlines introduced a 40 dollar temporary fuel surcharge on all VIPorter flight redemptions effective March 23, 2026.
This peak surcharge applies to each passenger and each direction of travel for flights booked using the airline’s premium loyalty program.
Existing bookings made before March 23 are not affected by this additional charge.
Porter has stated the surcharge is expected to be temporary and will be removed once jet fuel prices stabilize and return to normal levels.
The airline noted that fuel represents the highest cost of airline operations, and the surcharge allows it to maintain the number of loyalty points required for flight redemptions.
Air Transat Fuel Surcharge Details
Air Transat was among the first Canadian airlines to formally respond to soaring jet fuel costs with specific surcharges.
The airline implemented a fuel surcharge of 25 dollars per segment for flights departing from Canada and approximately 23.50 dollars for segments departing from Europe.
Unlike some competitors, Air Transat blends these surcharges into the total ticket price rather than listing them separately.
The airline has also raised fares on peak travel dates and routes where it faces less competition, giving it more flexibility to adjust pricing.
Air Transat’s chief executive noted that tickets already purchased cannot be repriced, and immediate fare increases would see a negative impact on demand.
Air Canada Fare Adjustments
Air Canada has confirmed that its pricing has been and continues to be adjusted to reflect higher fuel costs.
While the airline has not implemented a separately labelled fuel surcharge on regular ticket purchases, fare increases have been substantial across many routes.
Industry analysts estimate international tickets could rise by 100 to 200 dollars one way while domestic flights may see increases of 50 to 100 dollars.
Air Canada spent 4.7 billion dollars on fuel in fiscal 2025, making fuel costs a critical factor in its pricing decisions.
Complete Fuel Surcharge Comparison for Canadian Shipping Carriers
| Carrier | Current Rate | Effective Period | Update Frequency |
| Canada Post (Domestic) | 39.00% | April 6-12, 2026 | Weekly (Monday) |
| Canada Post (Int’l Parcel) | 22.75% | April 6-12, 2026 | Weekly (Monday) |
| Canada Post (Int’l Packet) | 20.75% | April 6-12, 2026 | Weekly (Monday) |
| FedEx Canada (Ground) | ~43.5% | As of April 6, 2026 | Weekly |
| FedEx Canada (Int’l) | ~20.5% | As of April 6, 2026 | Weekly |
| UPS Canada | 41% | As of late March 2026 | Weekly (Monday) |
| Purolator | 34.5% | April 6 – May 3, 2026 | Monthly |
Why Fuel Surcharges Are Rising So Dramatically
The closure of the Strait of Hormuz by Iran has created an unprecedented disruption to global energy supplies that is affecting prices worldwide.
Approximately 20 percent of the world’s crude oil and a significant portion of liquefied natural gas normally pass through this narrow waterway between Iran and Oman.
The International Energy Agency has characterized this as the largest supply disruption in the history of the global oil market.
Brent crude oil prices surged past 100 dollars per barrel in early March and have remained elevated throughout the conflict.
Jet fuel prices increased by more than 58 percent within just one week of the war beginning on February 28, 2026, creating massive cost pressures for airlines worldwide.
According to the IATA Jet Fuel Price Monitor, the global average hit roughly 195 dollars per barrel by early April, up from around 96 dollars in late February.
A Boeing 787 flight from Vancouver to Hong Kong that cost approximately 71,485 dollars to fuel in late February 2026 had risen to 110,171 dollars by mid-March.
That represents nearly 40,000 dollars in additional fuel costs for a single long-haul flight.
The Iran war has effectively blocked energy exports from the Gulf region, with Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait all forced to suspend shipments through the strait.
Canadian Gas Prices by Province
Gas prices at the pump have varied significantly across Canadian provinces, with coastal regions seeing the highest prices.
As of early April 2026, the national average reached approximately 181.6 cents per litre, the highest of the year so far.
| Province/Region | Approximate Gas Price |
| Ontario | $1.68 to $1.85 per litre |
| British Columbia | Over $2.00 per litre in some areas |
| Newfoundland and Labrador | $2.03+ per litre |
| Quebec (Montreal) | Over $2.00 per litre |
| Alberta | $1.55 to $1.75 per litre |
| Prince Edward Island | $1.80+ per litre |
| Saskatchewan | $1.60 to $1.75 per litre |
| Manitoba | $1.65 to $1.80 per litre |
| Nova Scotia | $1.85 to $1.95 per litre |
| New Brunswick | $1.80 to $1.90 per litre |
Before the Iran conflict began, the national average sat around 134 cents per litre in early March, representing an increase of approximately 35 percent in just one month.
Impact on Canadian Households and Businesses
The fuel surcharges rippling through Canada’s shipping and transportation networks will affect far more than just delivery costs.
Economists warn that diesel prices more than 30 percent higher than pre-conflict levels will start impacting the cost of virtually all goods.
Everything from online purchases to groceries arrives via truck, and higher transportation costs eventually flow through to consumer prices.
Small businesses and e-commerce sellers face particularly difficult choices as they decide whether to absorb higher fulfillment costs or pass them along to customers.
The Retail Council of Canada has noted that most companies initially try to absorb extra costs, but surcharges of this magnitude make that increasingly difficult to sustain.
Aviation industry experts suggest that if fuel prices remain elevated, travellers may see total price increases of up to 150 dollars on international flights and 50 to 100 dollars on domestic routes.
Food prices in Canada were already up 4.1 percent in February from a year earlier, with grocery costs having risen 30 percent over the past five years.
The Iran crisis adds fuel and fertilizer price pressures on top of these existing inflationary trends.
Services Not Implementing Fuel Surcharges
Not all transportation services have added visible fuel surcharges, providing some relief for consumers.
Via Rail has confirmed it does not plan to introduce a fuel surcharge at this time.
Uber has stated it is not imposing fuel surcharges on riders or increasing fees on Uber or Uber Eats orders.
Instead, Uber has increased cashback rewards for drivers who use their Uber Pro Card when purchasing gas.
DoorDash introduced a program providing drivers an additional 1.50 dollars per 50 kilometres driven between March 23 and April 26, up to a maximum of 36 dollars per week.
Drivers are automatically enrolled in this program and customers are not charged for the difference.
Lyft implemented a similar driver assistance program effective March 27 through May 26.
What Canadians Should Expect Going Forward
Industry analysts warn that fuel surcharges could remain elevated or even increase further if the Iran conflict continues into the summer months.
President Donald Trump indicated in a national address that U.S. military objectives in Iran are near completion but provided no precise timeline for when the conflict would end.
Even after hostilities cease, damage to critical energy infrastructure in the Gulf region could keep prices elevated for months as repairs are completed.
Aviation management experts note there has not been a global fuel shortage of this magnitude in the airline industry since the 1970s energy crisis.
Some analysts suggest that parts of the world heavily dependent on Middle Eastern fuel, particularly Southeast Asia, could face aviation fuel rationing.
Airlines may be forced to ground aircraft permanently if extreme fuel shortages persist, though Canadian carriers have not yet reached that point.
Tips for Managing Higher Costs
Travellers booking flights should consider locking in fares now before additional surcharges take effect, as tickets purchased today are generally not subject to retroactive fuel surcharges.
For shipping, consumers may want to consolidate orders when possible to minimize the number of separate deliveries and associated surcharges.
Comparison shopping between carriers remains important as surcharge rates vary significantly between companies.
Using airline loyalty points can help offset some travel costs, though many rewards programs have also added fuel surcharges to redemption bookings.
Booking during off-peak periods and choosing less popular routes may also provide some savings, as airlines have noted they raise prices most on routes with less competition.
Checking carrier websites regularly for updated surcharge rates is advisable as rates can change weekly for most shipping companies.
The wave of fuel surcharges sweeping across Canada represents a direct consequence of the unprecedented energy disruption caused by the Iran conflict.
From shipping parcels to booking flights, Canadians face higher costs at nearly every turn as businesses pass through elevated fuel expenses.
While companies frame these surcharges as temporary measures, the duration and ultimate impact will depend largely on how quickly the geopolitical situation resolves and global energy markets stabilize.
For now, consumers should factor these additional costs into their budgets, comparison shop between service providers, and consider consolidating shipments or booking travel early to minimize the financial impact.
Frequently Asked Questions (FAQs)
Why are Canadian airlines adding fuel surcharges now?
The closure of the Strait of Hormuz by Iran has disrupted approximately 20 percent of global oil supplies, causing jet fuel prices to spike by more than 58 percent since late February 2026. Airlines cannot absorb these massive cost increases without passing some portion to passengers through surcharges or higher base fares.
Will Amazon prices increase due to the new fulfillment surcharge?
While Amazon’s 3.5 percent surcharge applies to sellers rather than consumers directly, third-party sellers will likely pass some or all of these increased costs through higher product prices. The average impact is approximately 26 cents per unit for Canadian sellers, though this varies by product size.
How long will these fuel surcharges last?
Most companies describe their surcharges as temporary measures that will be removed once fuel prices stabilize. However, even after the Iran conflict ends, infrastructure repairs and market normalization could keep surcharges elevated for several months. Experts suggest planning for elevated costs through at least summer 2026.
Which shipping carrier has the lowest fuel surcharge in Canada?
Surcharge rates vary by carrier, service type, and week. As of early April 2026, Purolator’s 34.5 percent rate is slightly lower than FedEx and UPS for ground services. Canada Post’s domestic rate of 39 percent sits in the middle range. Comparison shopping between carriers is strongly recommended for the best rates on specific shipments.
Can I avoid fuel surcharges on flights booked with loyalty points?
Unfortunately, most airline loyalty programs have also implemented fuel surcharges on reward bookings. Porter Airlines charges 40 dollars per passenger each way on VIPorter redemptions, and WestJet’s 60 dollar surcharge applies to companion voucher bookings. Checking the total cost including all fees before redeeming points is strongly advisable.
Fact Checked: All surcharge rates and effective dates in this article have been verified against official company announcements, corporate websites, and confirmed media reports as of April 7, 2026.
Disclaimer: Fuel surcharges are subject to change without notice. Rates listed reflect the most current information available at the time of publication. Consumers should verify current surcharge rates directly with carriers before making shipping or travel decisions.
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