Just in time for Christmas, BC Ferries has announced it will be passing along some savings to passengers starting Tuesday.

The ferry operator said it will dump the 1.5 per cent fuel surcharge currently being applied to the cost of each ferry ticket following a recent decrease in the price of fuel.

"We did implement a fuel surcharge as of Jun. 1, due to the rising cost of fuel. But now the price of fuel has come down and we're happy to be in a position to eliminate that fuel surcharge," said spokeswoman Deborah Marshall.

Ferry passengers should see a reduction of 25 cents per person and another 85 cents per vehicle.

"Fuel is our second largest expense," said Marshall. "We spend just over $100 million per year on fuel, so it is a big expense for BC Ferries, and we're glad that the price of fuel is coming down."

The BC Ferries vessel, the Salish Raven, is one of three intermediate ferries operated by BC Ferries built in 2016 at Remontowa Shipbuilding S.A. in Gdansk, Poland. They were the first dual-fuel powered vessels in British Columbia service, capable of using liquified natural gas or diesel to operate. (BC Ferries)

More LNG and electric hybrid ferries coming on board

Over the past 15 years, BC Ferries has applied either a surcharge, rebate — or neither — to fares, in order to manage the volatility in the price of fuel.

The ferry operator said it does not benefit financially from rebates or surcharges and only uses the mechanism as a way of assisting the company when fuel is more expensive than usual or reimbursing consumers when fuel costs dip below average.

Two new electric battery hybrid vessels are expected to go into service by next summer, with another four expected by 2022, according to Monday's statement.

"The first one will enter service on the Powell River-Texada run, and the second one will enter service between Port McNeill, Alert Bay and Sointula," said Marshall.

BC Ferries currently operates five vessels than run on liquefied natural gas, which the company said is a cleaner and less expensive fuel than low-sulphur diesel.