Services

PBT Variable Fuel Charge

Procedure description

At the beginning of each month we calculate a fuel surcharge using the MBIE dataset and apply it on the 1st of the following month. Within the fuel monitoring dataset we use the field labelled ‘Diesel_main_port_price_NZc.p.l’ to measure changes in Diesel prices.

The MBIE dataset is available from the following link.

http://www.mbie.govt.nz/info-services/sectors-industries/energy/liquid-fuel-market/weekly-fuel-price-monitoring

When the average diesel rate exceeds $1.35 per litre we apply a surcharge based on the following table. There is no variable fuel charge when the average diesel rate is below $1.35 however, we always add the current road user surcharge of 3.89 per cent to the invoice as road user charges do not change with diesel rates.

As a rule of thumb, each five cent increase above $1.35 is worth 1%.

Global VFC Table Effective 1 July 2015

Fuel prices at pumpCore VFC %RUC %Total
$1.35 - $1.399 1% 3.89% 4.89%
$1.40 - $1.449 2% 3.89% 5.89%
$1.45 - $1.499 3% 3.89% 6.89%
$1.50 - $1.549 4% 3.89% 7.89%
$1.55 - $1.599 5% 3.89% 8.89%
$1.60 - $1.649 6% 3.89% 9.89%
$1.65 - $1.699 7% 3.89% 10.89%
$1.70 - $1.749 8% 3.89% 11.89%
$1.75 - $1.799 9% 3.89% 12.89%
$1.80 - $1.849 10% 3.89% 13.89%
$1.85 - $1.899 11% 3.89% 14.89%

Our variable fuel charge table is unique to PBT and a direct comparison with other freight companies is not possible as some load a fuel factor into their rates. Others may limit the subsidy they give to their contractors, or they may not include a subsidy at all. Therefore, they will have a lower surcharge. The PBT Diesel subsidy is designed to support our network contractors as compensation for their increased running costs.

Rail rates also include a fuel charge as the New Zealand rail fleet is diesel powered. Only metro Wellington and Auckland use electric powered trains and they do not carry freight.

We print next month’s variable fuel charge on each statement.

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