Young Brothers Ltd. said oil prices have fallen far enough for it to it to eliminate its fuel surcharge for the next three-month period, starting March 3.

The interisland shipping company disclosed the news in a filing today with the Public Utilities Commission. For the prior three-month period from December 2008 through February 2009, Young Brothers' fuel surcharge was 6.57 percent.

"We are pleased with this development as this effectively reduces cargo rates for our customers by 61/2 percent," said Roy Catalani, vice president of strategic planning and government affairs for Young Brothers.

"If fuel prices remain at or near current levels, our customers will not see any form of fuel surcharge this year," Catalani added.

Under its tariff, Young Brothers reviews and, if necessary, adjusts the fuel price adjustment every three months. Young Brothers will again review its FPA in June 2009.