Transparent & fair
Transparent & fair
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.
VARIABLE FUEL FACTOR TABLE AS AT 2ND JULY 2012
The current fuel factor % for domestic services is:
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 will use a base rate of $0.95 (diesel pump price including GST).
Every 1c movement above $0.95 in the average pump price, will result in an increase of 0.1% in our pricing. The average diesel pump price is published by the Ministry of Economic Development. The VFF is updated monthly and automatically adjusted on your invoice.
If the average monthly diesel price reduces below the base rate of $0.95, the variable fuel factor will be 0%
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, however if the price of diesel falls below our baseline price of $0.95 the VFF% will drop to zero.