Fuel adjustment

Variable Fuel Factor

RUC Adjustment Factor

Recently the government announced another increase to the current Road User Charges (RUC's). As such please be aware that effective June 29th 2020 RUC charges will increase from 4.2% to 4.5%. Click here for more information.

Temporary Service Continuity Surcharge

Click here for more information.

Variable Fuel Factor Table

Variable Fuel Factor FAQ

Q: What is a Variable Fuel Factor (VFF)?

A: Fuel costs are understandably one of the most significant and variable cost components of our business. The Variable Fuel Factor (VFF) 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 VFF cost me?

A: The VFF will be calculated on the first day of each month and will be based on the average diesel price (adjusted for regional fuel taxes) 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

On the 27th August 2018 the retail price of fuel as published by the Ministry of Business, Innovation and Employment was adjusted by $0.32 to account for the Auckland Regional Fuel Tax. (Auckland Council implemented a $0.10/litre [excl GST] regional Fuel Tax on July 1 2018)

Effective 1 January 2022 we have reduced this Fuel Tax from $0.32 to $0.16.

We at Post Haste recognise the increased cost of fuel (VFF) is adding to your business and that the increased price of diesel is growing at a higher rate than previously experienced.

Accordingly we have revised our mechanism. Instead of a 0.1% increase for every additional $0.01 in the average pump price*, we have slowed the rate to 0.1% for every $0.02 increase.

We have published a revised table. As we don't anticipate fuel dropping below $1.45 we have used this as the new trigger point (from $0.95 historically) and fuel will increase/decrease at the slower rate, from this base.

*Average diesel price (adjusted for regional fuel taxes) 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.

Q: What does this mean for me?

A: A current diesel rates of $1.89 under the historical pricing mechanism meant a VFF rate of 9.7%. Under the revised mechanism, the rate is 7.4%.

VFF will be rounded up to the nearest cent; 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.

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 VFF?

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.mfe.govt.nz/ets.