Fuel Calculators
Diesel prices have rapidly increased following the conflict in the Middle East and global fuel supply disruptions. At this time, it is particularly important for road freight companies to understand their costs and review their contracts.
We encourage all transport companies to carefully review their costs and the current implementation of their fuel adjustment factor (FAF) clauses in contracts, if they have them.
Transporting New Zealand has developed the following calculators to help transport companies:
- assess the impact of diesel price changes on their business cost;
- review the current implementation of their fuel adjustment factor clauses; or
- consider negotiating for FAF clauses in contracts where appropriate, and permitted within their contractual arrangements.
You can contact your local membership manager for further advice and information.
Fuel Cost Variance
This calculator provides a view of fuel cost variance over a four-week period, based on changes in diesel prices. It is designed as a practical, transparent tool to help freight operators understand how fuel price movements impact operating costs over time.
This does not represent a full freight cost model or a recommended industry surcharge.
Fuel Cost Impact Tool
This tool provides an indicative view of how changes in fuel prices impact business costs. It is designed as a transparent, educational tool to help freight operators and customers understand how differences in fuel pricing flow through to overall operating costs. It does not represent a full freight cost model or a recommended industry surcharge.
Fuel Adjustment FactorÂ
A fuel adjustment factor is a variable pricing mechanism that calculates and incorporates changing fuel prices into freight costs. There are different ways of calculating a fuel adjustment factor.
Carefully review your freight contracts and conditions before considering negotiating a FAF clause or amending an existing FAF clause, and seek advice from legal advisors. Transporting New Zealand members are eligible for free initial legal consultations with Wynn Williams and Ford Sumner Lawyers.
Important compliance notes from the Commerce Commission
- If you want to have a fuel surcharge or a fuel adjustment factor it should be transparently disclosed in pricing.
- Any statements or communications should not mislead customers or the public as to reason for the fuel charges and any increases should be able to be substantiated.
- And if your costs go down, you need to reduce or remove the surcharge.
- Competition benefits consumers, even in times of crisis. Do not use collaboration to collude, including on fuel surcharges. Do not meet with competitors without legal advice or checking with the Commerce Commission first.
- Talk to the Commerce Commission early and read their emergency response guidance on their website.