Domestic Variable Fuel Factor FAQ
- What is a Variable Fuel Factor (VFF)?
- How much will the VFF cost me?
- How will this impact my business?
- Will I be notified of each increase?
- How does Emissions Trading Scheme impact VFF?
- What is the "base rate" at which I will be charged VFF?
What is a Variable Fuel Factor (VFF)?
The Variable Fuel Factor (VFF) is a charge that is applied to both Domestic and International Courier Services to off-set the current fuel volatility. The total price you pay for a courier product/service will comprise of two components – the base price and the variable fuel factor. Multiplying the base price by the variable fuel factor will give the total price.
This section of the website provides information about our VFF and the current VFF rate for Domestic services. For more information about our VFF and the current VFF rate for International services please visit our International Fuel Adjustment page.
How much will the VFF cost me?
The VFF will be calculated on the first day of each month and will be based on the average diesel price 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
How will this impact my business?
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. This is updated monthly and will be automatically adjusted on your invoice.
The rates for our Variable Fuel 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, Post Haste 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 as published by the Ministry of Economic Development – we will calculate the VFF for any given month using the average diesel prices from two months earlier.
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 Useful Information section.
How does Emissions Trading Scheme impact VFF?
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.
What is the "base rate" at which I will be charged VFF?
The VFF base rate as of 1st August 2011 is $0.95.
