Matson is rolling back the increase that went into effect on March 3 when oil prices were rising.

Crude oil for June delivery was down 99 cents, or 3.5 percent, at $27 a barrel this morning on the New York Mercantile Exchange. Oil has plunged 32 percent from a 12-year high of $39.99 reached on Feb. 27.

"As is Matson's practice relative to fuel price adjustments, we are acknowledging the recent trend in fuel prices and feel that a reduction is warranted at this time," said Matson executive vice president Paul E. Stevens in a statement.

Stevens said the surcharge reduction "represents a 13 percent decrease in the dollar amount customers are currently paying for a fuel surcharge. It is important to note that while high fuel costs adversely affect many businesses, as well as consumers, transportation companies are especially hard hit. We will continue to monitor fuel costs and adjust the surcharge accordingly."

Matson said earlier that each rise of a $1 per barrel equates to an additional $1.8 million in costs per year.

Horizon spokesman Brian Taylor said his company "will probably be matching" the Matson cut in the next few days.

"Fuel is a tremendous cost-driver," Taylor said when prices were going up.

Members of the Organization of Petroleum Exporting Countries meeting in Vienna this week are worried that a surplus of crude oil will grow unless they cut back on production.

"An oil glut may form in two or three months," said Saudi Arabian Oil Minister Ali al-Naimi. Excess production already totals 2 million barrels a day, said Abdullah bin Hamad al-Attiyah, president of OPEC.