01/13/2014 07:22 EST | Updated 03/15/2014 05:59 EDT

Canada Post withdraws $5 surcharge on parcel deliveries in oilsands town

FORT MCMURRAY, Alta. - Canada Post has backed away from charging companies an extra $5 for mailing packages to Alberta's oilsands town.

The extra fee was supposed to have started Monday for commercial deliveries in Fort McMurray.

Fort McMurray Chamber of Commerce president Nick Sanders says the business community is happy that Canada Post is not going ahead with the extra fee.

He says businesses in the community nearly 440 kilometres northwest of Edmonton order a lot of supplies from other places.

Canada Post spokeswoman Anick Losier says the extra fee was to reflect the cost of doing business in Fort McMurray.

She says other delivery companies currently charge a fee ranging from $2.75 to about $9.

Losier says Canada Post has had a hard time getting and keeping workers.

“We’ve had to be creative in finding solutions such as contracting out the parcel delivery," Losier said.

The surcharge was announced last week for Fort McMurray only, and immediately caused push-back.

The residential delivery surcharge that was supposed to be coming in February is also cancelled.