1 week Ago
Bangor International Airport leaders are following President Donald Trump’s tariff threats closely because all of its fuel comes from Canada. While Trump didn’t follow through with his promise to impose new tariffs on his first day in office, he said Monday he plans to put a 25 percent tariff on products from Canada and Mexico starting on Feb. 1.
This means any Canadian products coming into the United States will be subjected to an additional 25 percent tax. The airport receives all of its fuel from Canada because it has a contract with New Brunswick-based Irving Oil, according to Jose Saavedra, the airport’s director. Higher costs could be felt by anyone who relies on the Bangor airport for fuel, whether that’s a private plane or a major airline with regular service to the city.
The U.S. Department of Defense would also feel the burden, Saavedra said, as it buys half of the airport’s fuel.
“It is very possible that these added costs to our tenants and vendors would eventually be felt by passengers,” Saavedra said. If the Bangor airport suddenly has to pay more for fuel starting next month, the expense would come after the airport celebrated a record-breaking year . Some 740,000 passengers traveled through the Bangor airport in 2024, far exceeding the previous annual record of 707,000, according to Saavedra.
The airport has relied on Irving Oil for fuel for years, Saavedra said, because the Canadian company consistently offers the best products at the most competitive price. Additionally, the airport can trust the company to deliver on time from its Canadian headquarters. It arrives by barge in Bucksport and is then trucked to the airport’s on-site tank farm, he said.
Saavedra said it’s unclear whether any Canadian products, such as fuel, could be exempt from Trump’s planned tariff. The airport goes through roughly 20 million gallons of fuel a year, and half of that is used by the Department of Defense, Saavedra told the Bangor City Council’s business and economic development committee on Wednesday. While Saavedra did not disclose how much the airport’s contract with Irving Oil costs, he said the airport budgeted for 21.
6 million gallons of fuel in fiscal year 2025, which accounts for one-third to half of the airport’s overall budget. The Bangor airport issues a request for proposals every few years to provide its fuel, Saavedra said, but he’s unsure whether the airport can back out of its purchase agreement. However, based on previous offers they’ve received from other fuel suppliers, “there is a limited selection of fuel providers that can provide the product, quantity and quality of fuel that we require,” he said.
“From the airport’s standpoint we remain optimistic, however we are monitoring the situation and will make adjustments if and as needed,” Saavedra said. More articles from the BDN.
