Fuel adjustment

Fuel adjustment factor



RUC Adjustment Factor

Recently the government announced another increase to the current Road User Charges (RUC's). As such please be aware that effective July 1 2019 RUC charges will increase from 3.9% to 4.2%. Click here for more information.


Earthquake Recovery Surcharge

A disruption surcharge on inter island freight movements between the North and South Islands in both directions currently applies. Click here for more information.

 

This page is designed to help you with any questions you may have regarding Fuel Adjustment.

 

Fuel adjustment factor table



Fuel adjustment factor FAQ

Q: What is a Fuel Adjustment Factor (FAF)?

A: Fuel costs are understandably one of the most significant and variable cost components of our business. The Fuel Adjustment Factor (FAF) was introduced for the purpose of recovering the increased costs in fuel, primarily diesel, to fairly compensate our contractors, line haul operators and where relevant, to cover increased airfreight and ferry fuel costs.

Q: How much will the FAF cost me?

A: The FAF will be calculated on the first day of each month and will be based on the average diesel price (adjusted for regional fuel taxes) from two months earlier. By using this mechanism, we can:

  • Provide transparency for customers to see how it is calculated
  • Take into account any shifts in the price of fuel that impact significantly on the price of moving courier items

On the 27th August 2018 the retail price of fuel as published by the Ministry of Business, Innovation and Employment was adjusted by $0.32 to account for the Auckland Regional Fuel Tax. (Auckland Council implemented a $0.10/litre [excl GST] regional Fuel Tax on July 1 2018)

Q: How will this impact my business?

A: We will be using a base rate of $0.95 (diesel pump price including GST) for domestic courier services.

Every 1c movement above $0.95, in the average pump price*, will result in a 0.1% increase in our pricing. FAF will be rounded up to the nearest cent; this is updated monthly and will be automatically adjusted on your invoice.

The rates for our Fuel Adjustment Factor will be recalculated on a monthly basis.

Nationally and globally, the courier and transportation markets have seen massive increases in fuel prices. In the past, NOW Couriers has tried hard to absorb these costs, minimising the impact on our customers. Unfortunately prices have come to a level where we must follow other transport operators in implementing a "fuel surcharge" system.

*Average diesel price (adjusted for regional fuel taxes) as published by the Ministry of Economic Development - we will calculate the FAF for any given month using the average diesel prices from two months earlier.
Q: Will I be notified of each increase?

A: Our website will be updated each month detailing the increase/decrease for that month. You can find this page in our FAQs section.

Q: How does Emissions Trading Scheme impact FAF?

A: The New Zealand Emissions Trading Scheme (ETS) is part of the Government�s primary response to global climate change. Effective 1st July 2010 an additional tax will be applied to fuel, and passed on through the pump price. For more information on the ETS visit www.climatechange.govt.nz/emissions-trading-scheme.

Q: What is the current 'base rate' at which I will be charged FAF?

A: The FAF base rate as of 1st of August 2011 is $0.95