Fuel Adjustment
Fuel Adjustment Factor
| Month | FAF % |
| August 2010 | 0.0% |
| July 2010 | 0.6% |
| June 2010 | 0.0% |
- Click here to view previous month's data
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May 2010 0.0% April 2010 0.0% March 2010 0.0% February 2010 0.0% January 2010 0.0% December 2009 0.0% November 2009 0.0% October 2009 0.0% September 2009 0.0% August 2009 0.0% July 2009 0.0% June 2009 0.0% May 2009 0.0% April 2009 0.0% March 2009 0.0% February 2009 0.3% January 2009 1.2% December 2008 3.6% November 2008 4.2% October 2008 6.0% September 2008 6.6% August 2008 5.4% July 2008 3.6% June 2008 2.1%
This page is designed to help you with any questions you may have regarding Fuel Adjustment.
Fuel Adjustment Factor Table
| Diesel Price | FAF % increase |
| up to $1.20 | 0.00% |
| $1.23 | 0.30% |
| $1.26 | 0.60% |
| $1.29 | 0.90% |
| $1.32 | 1.20% |
| $1.35 | 1.50% |
| $1.38 | 1.80% |
| $1.41 | 2.10% |
| $1.44 | 2.40% |
| $1.47 | 2.70% |
| $1.50 | 3.00% |
| $1.53 | 3.30% |
| $1.56 | 3.60% |
| $1.59 | 3.90% |
| $1.62 | 4.20% |
| $1.65 | 4.50% |
| $1.68 | 4.80% |
| $1.71 | 5.10% |
| $1.74 | 5.40% |
| $1.77 | 5.70% |
| $1.80 | 6.00% |
| $1.83 | 6.30% |
| $1.86 | 6.60% |
| $1.89 | 6.90% |
| $1.92 | 7.20% |
| $1.95 | 7.50% |
| $1.98 | 7.80% |
| $2.01 | 8.10% |
Fuel Adjustment Factor FAQ
- What is a Fuel Adjustment Factor (FAF)?
Fuel costs are understandably one of the most significant and variable cost components of our business. The fuel adjustment factor was introduced for the purpose of recovering the increased costs to fuel, primarily diesel, to pass on to our contractors, linehaul operators and where relevant, to cover increased airfreight and ferry fuel costs.
- How much will next the increase be?
From 1st July 2010 our fuel adjustment factor (FAF) will take effect at 0.6%. For every 3c movement in the average pump price our rates will move by +/- 0.3%.
- How often will the FAF be reviewed?
We will review the price of fuel and the impact on our business each month. As the pump price of fuel fluctuates, our FAF will rise and fall in line with fuel prices.
- Will I be notified of each increase?
Our website will be updated each month detailing the increase/decrease for that month. You can find this page in our FAQ section.
- How do I manage this increase within my business?
We have implemented a two month lag in an effort to provide some relief from the increases. The rate for each subsequent month will be based on the fuel price two months prior.
- What has happened with the price of diesel?
Diesel costs have risen over the past year by 35% over the price at the same time as last year.
- How does Emissions Trading Scheme impact FAF?
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.
Notification of Fuel Uprate, Effective July 2010
The increase in the pump price of diesel in late April has seen fuel pricing move above the benchmark level of $1.20 per litre that we set back in June 2008 and therefore FAF is due to be applied effective 1st July 2010. In line with this there is also the additional impact of the Emissions Trading Scheme (ETS) which comes into effect as of 1st July. This has been factored into the FAF calculation. For more information on the ETS visit www.climatechange.govt.nz/emissions-trading-scheme.
From the above date a 0.6% FAF will be applied to all transactions which takes into consideration the two month lag Castle Parcels have built into our FAF methodology.
Castle Parcels will continue to assess fuel prices at the end of each month with the rate for each subsequent month based on the price two months prior. In simple terms each .03c movement in the average pump price, as measured at the start of the month, will equate to a +/- 0.3% movement in our rates. This will be updated each month on our website www.castleparcels.co.nz in our Fuel Adjustment section. You will also be able to see how the FAF calculation operates.
I would like to assure you that we value your business and continued support and should you have any questions regarding the content of this letter please contact your Account Manager, local Branch Manager, or myself.
Regards
Mark Skews
General Manager
Castle Parcels Limited
