Fuel adjustment factor
- Click here to view previous months' data
RUC Adjustment Factor
From July 1st Castle Parcels will be introducing a road user charge. Click here for more information.
A 9.8% disruption surcharge on inter island freight movements between the North and South Islands in both directions currently applies.
Fuel adjustment factor table
|Diesel Price||FAF % increase|
|up to $0.95||0.00%|
Fuel adjustment factor FAQ
- Q: What is a Fuel Adjustment Factor (FAF)?
A: Fuel costs are understandably one of the most significant and variable cost components of our business. The Fuel Adjustment Factor (FAF) was introduced for the purpose of recovering the increased costs in fuel, primarily diesel, to fairly compensate our contractors, line haul operators and where relevant, to cover increased airfreight and ferry fuel costs.
- Q: How much will the FAF cost me?
A: The FAF 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
- Q: How will this impact my business?
A: 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. FAF will be rounded up to the nearest cent; this is updated monthly and will be automatically adjusted on your invoice.
The rates for our Fuel Adjustment 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, Castle Parcels 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 FAF for any given month using the average diesel prices from two months earlier.
- Q: Will I be notified of each increase?
A: Our website will be updated each month detailing the increase/decrease for that month. You can find this page in our FAQs section.
- Q: How does Emissions Trading Scheme impact FAF?
A: 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.
- Q: What is the current 'base rate' at which I will be charged FAF?