Apr 11, 2026
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If you received an email from Sunwing Vacations this week, you already know something has changed. Starting April 14, 2026, the tour operator is adding a $50-per-person fuel surcharge to all new bookings. A family of four planning a spring getaway to Mexico or the Dominican will now pay $200 more — even before they've chosen a seat or packed a bag.
Sunwing isn't alone. Across the Canadian economy, businesses are quietly passing elevated fuel costs on to consumers — sometimes as a visible line item, sometimes folded into higher prices across the board. Understanding where these charges appear and how large they are is the first step to managing them.
Why did fuel costs spike so fast?
What triggered fuel costs to spike so fast was the disruption of tanker traffic through the Strait of Hormuz, the narrow waterway near Iran that handles roughly 20% of the world's oil shipments. The disruption came after the U.S. and Israel attacked Iran in late February 2026. Crude oil prices climbed past US$100 (C$135) a barrel almost immediately (1).
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For Canadians, the effect at the pump was fast and steep. The national average for regular gasoline rose from approximately $1.28 a litre to nearly $1.91 in just over a month, with Vancouver reaching as high as $2.18 a litre (2). According to John Gradek, an aviation management lecturer at McGill University, jet fuel — which tracks crude oil closely — saw an even sharper move, with the International Air Transport Association's (IATA) price tracker showing a 58.4% spike in a single week (3).
"I think what you're seeing happening now is a volatility in jet fuel that hasn't been seen in years," Gradek told Global News.
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Where the surcharges are showing up
Fuel surcharges, due to the disruption in the Strait of Hormuz aren’t just showing up as an extra fee on your airline ticket; these charges are showing up in a variety of products and services used by Canadians every day. Here’s a list of sectors and businesses currently hit.
Travel and vacation packages
Vacation package operators are moving the fastest and most visibly. Sunwing Vacations announced a $50-per-person fuel surcharge on all new bookings made as of April 14, 2026, with bookings made before 11:59 pm ET on April 13 grandfathered in at existing prices. Existing bookings are not affected.
Air Transat has added a surcharge of $25 on flight segments departing Canada and approximately $23.50 on segments departing Europe, and Air Transat has raised fares on peak travel dates and routes with less competition (4).
Air Canada Vacations — the package-travel arm of Air Canada (TSX:AC.TO) — added a $50-per-passenger fuel surcharge to warm-weather destinations as of early April (5). Air Canada's mainline flights are not listing a separate surcharge, but the carrier confirmed in a CBC interview that pricing "has been and continues to be adjusted to reflect these higher fuel costs." WestJet confirmed to Global News that the situation "has already made operating flights more expensive" and that further pricing adjustments are likely.
Parcel delivery and shipping
The surcharges are particularly transparent in the shipping sector. According to CBC News, Canada Post introduced temporary fuel surcharges of 35% on domestic services, 20.75% on international parcels and 18.75% on international packets for the period between March 30 and April 5. FedEx (NYSE:FDX) and UPS (NYSE:UPS) also adjust fuel surcharges regularly based on current diesel prices.
Amazon (TSX:AMZN.TO) is applying a 3.5% surcharge to fulfillment fees for Canadian sellers using its Fulfillment by Amazon (FBA) program, starting April 17, 2026 (6). For small business owners who ship product to customers, those costs typically get passed on downstream.
Ride-hailing and delivery apps
For now, ride-hailing and delivery platforms appear to be absorbing more of the pressure rather than passing it directly to consumers. DoorDash (NASDAQ:DASH) is offering drivers up to $36 per week in fuel support, while Lyft (NASDAQ:LYFT) has rolled out a similar program. Uber (NYSE:UBER) is increasing cash-back fuel rewards for drivers rather than adding visible fees for riders (7). That balance may not hold if oil prices stay elevated.
What this means for your household budget
According to a report (8) from Claire Fan, a senior economist at RBC (TSX:RY.TO), "higher energy prices mechanically raise headline inflation, but lower household purchasing power — potentially weakening demand for non-energy goods and services." Fan notes that it is too early to know whether elevated oil prices will require a formal response from the Bank of Canada.
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Supply chain expert Andre Cire, a professor at the University of Toronto, warns that grocery costs could also climb 10% to 15% if oil prices remain elevated, because transportation is embedded in virtually everything sold in a Canadian store (9).
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
What can Canadians do, right now!
You can't control the price of crude oil, but you can reduce your exposure where you have choices.
On travel bookings: if you have a Sunwing, Air Transat or other package vacation in mind, book before the surcharge cutoff if possible, or check whether flexibility on dates can land you on a less-affected route.
Loyalty points and travel rewards tend to hold their value more steadily than cash fares during fuel spikes — if you have unused air miles or credit card travel points, this is a reasonable time to redeem them.
Read any travel insurance policy carefully before purchasing: Acts of war are typically excluded from standard coverage.
On shipping and deliveries: if you run a small business, review your shipping cost structure now and consider whether surcharges need to be reflected in your own pricing before they erode margins further.
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For personal shipments, consolidating packages can reduce per-item surcharges, or consider e-gifts such as e-gift cards.
On your grocery and household budget: build a small buffer into your monthly grocery budget before food transportation costs filter through to shelf prices. Buying staples now, while prices are relatively stable, is a modest hedge against an increase in grocery prices in the near future.
On variable-rate debt: University of Calgary Economist Trevor Tombe has noted that Canadians should prepare for prolonged inflation if the conflict continues, and that the Bank of Canada may not be positioned to lower rates while energy-driven inflation is running (10). If you carry variable-rate debt, speak with your lender about locking in a fixed rate before conditions shift further.
Another option is to consolidate high-interest debt into a consolidation loan — this gets you one low monthly payment and helps pay off debt faster. Use a loan consolidator, like Loans Canada. Fill out one application and compare rates from 20+ lenders — with access to cash usually within 48 hours.
Looking forward
The conflict is still unfolding, and no expert is forecasting a quick return to pre-war fuel prices. The best approach right now is to review where fuel surcharges affect your regular spending, make any time-sensitive booking or purchase decisions before announced cutoff dates, and avoid big financial commitments given today's elevated fuel prices. Costs could stabilize — or climb further. Building in flexibility is the most practical hedge available.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Money.ca: Iran war hitting your grocery bill (1); Money.ca: Gas prices are up 49% in a month (2); Money.ca: Jet fuel prices are spiking because of the war in Iran and your next flight could cost a lot more (3, 4); Money.ca: Fuel surcharges are showing up everywhere (5, 6, 7); RBC (8); Vision Times (9); The Hub (10)
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Romana King is the Senior Editor at Money.ca. She writes for various publications, and her book -- House Poor No More: 9 Steps That Grow the Value of Your Home and Net Worth -- continues to be an Amazon bestseller. Since its publication in November 2021, this book has won five awards, including the New York CPA Society's Excellence in Financial Journalism (EFJ) Book Award in 2022.
