TT-Line has pledged to remove its temporary 15% fuel surcharge on Spirit of Tasmania bookings “as soon as possible” as it faces growing pressure from Labor to scrap the levy immediately.
TT-Line Chair Ken Kanofski said the surcharge was under constant review.
“We are looking very closely at the passenger fuel surcharge because, as we have always said, it is a temporary measure aimed at recovering the additional cost of fuel,” Kanofski said.
“It’s a complex issue for us, as people pay for their tickets at a different time than they sail.”
The company said it had already absorbed $1.6 million in extra fuel costs before introducing the surcharge three months ago.
In April and May, fuel costs linked to passenger travel were $4.1 million above forecast levels, with $2.4 million of that recovered through the surcharge.
“We had to balance our financial exposure to increasing fuel costs with the impact a surcharge could have on demand and ticket sales,” Kanofski said.
“We will continue assessing all factors relating to fuel and will remove the passenger fuel surcharge as soon as we are able.”
But Labor is calling on the Liberal government to instruct TT-Line to drop the levy now, saying fuel prices have fallen below pre-conflict levels.
Labor Leader Josh Willie said the surcharge looked like a tax to cover the company’s financial troubles.
“The fuel price has come down to below what it was before the conflict started, yet TT Line has this surcharge in place still,” Willie said.
“It looks like a tax on Tasmanians and our visitor economy to pay for the ferry fiasco mess.”
Shadow Minister for Tourism Anita Dow said other ferry operators had already removed their surcharges, with Port Phillip Ferries returning to original pricing more than a week ago.
“Why should Tasmanians and visitors to this state pay for the incompetence of the Liberal government?” Dow said.
Treasurer Eric Abetz defended TT-Line, saying the company was continually monitoring whether it was appropriate to continue the surcharge.
“I think all of us know that there have been substantial increases in fuel prices,” Abetz said.
He added that the surcharge had not covered the full cost of extra fuel expenses TT-Line was incurring.
TT-Line said its separate freight fuel surcharge would remain unchanged, in line with industry standards.
The surcharge debate comes as TT-Line continues to face significant financial pressure, with the state government committing a $506 million bailout over four years in the 2026-27 budget to cover capital cost overruns on new ferries and the Devonport berth.
The two new vessels are due to begin Bass Strait services from October 31, years behind the original schedule.
