Transparent & fair
for everyone.
Variable Fuel Factor.
The frequent fluctuations in the price of fuel has impacted on many New Zealand businesses. We have maintained our vigilance in regards to cost control however it became clear in recent years that we needed to introduce a flexible element in our pricing structure to take into account the variable nature of fuel costs.
From 1 October 2025, we’ve split out the Road User Charges (RUC) component from our total Variable Fuel Factor to increase transparency and align with other Freightways brands. The intention is to only adjust this surcharge (up or down) if the government alters RUC rates.
Variable Fuel Factor
FAQS
Fuel costs are a significant cost to our contractors’ businesses and a Variable Fuel Factor was introduced in June 2008 to recover some of the increased costs of diesel. The majority of this is passed on to our contractors so they are able to cover these additional costs.
As the cost of fuel fluctuates on a regular basis we are unable to set an across the board VFF.
We use the monthly price of diesel to determine what the VFF rate will be which has a lag. I.e. the diesel price in January will be used to determine what the VFF will be effective 1st March.
We use a base rate of $1.46 (diesel board price including GST) with a fuel factor of 5.7%.
Every 2c movement in the average diesel board price, will result in an increase of 0.1% in our pricing. The average diesel board price is published by the Ministry of Business, Innovation & Employment. The VFF is updated monthly and automatically adjusted on your invoice.
The Variable Fuel Factor calculation is based on a lag to give our customers adequate notice of the fuel factor percentage. Our website will be updated each month detailing the increase/decrease for that month.
We review the VFF each month using the average diesel price from months prior. The VFF is updated monthly on our website.
No. The fuel factor does not apply to bicycle services or surcharges.
The VFF is here to stay.