FAF for September 2020 is set at 12.5%

Fluctuations in diesel prices can have a major impact in the financial performance of any transport operation.

In order to keep the impact of a volatile fuel market to a minimum, the vast majority of transport companies implement a Fuel Adjustment Factor, or FAF.
In addition to this, the government has decided to increase both the Excise tax and Road User charges, effective 1st July 2020. This increase will be included in the monthly FAF calculation, an example is outlined below.

Fuel Surcharge RUC Surcharge Total Fuel and RUC
11.8% 0.7% 12.5%

We calculate FAF and RUC surcharge using the average diesel pump price recorded throughout the previous month and on the first of each new month, the corresponding FAF percentage is applied for that new month.
Below is a table outlining how we calculate the FAF and RUC surcharge based off average pump price. Note: this includes the recent Auckland fuel levy and the increase in RUC costs, the most recent taking effect 1st July 2020.

Diesel Pump Price Total FAF and RUC Percentage
$1.10 to $1.149 6.50%
$1.15 to $1.199 7.50%
$1.20 to $1.249 8.50%
$1.25 to $1.299 9.50%
$1.30 to $1.349 10.50%
$1.35 to $1.399 11.50%
$1.40 to $1.449 12.50%
$1.45 to $1.499 13.50%
$1.50 to $1.549 14.50%
$1.55 to $1.599 15.50%
$1.60 to $1.649 16.50%
$1.65 to $1.699 17.50%
$1.70 to $1.749 18.50%
$1.75 to $1.799 19.50%
$1.80 to $1.849 20.50%
$1.85 to $1.899 21.50%
$1.90 to $1.949 22.50%
$1.95 to $1.999 23.50%
$2.00 to $2.049 24.50%
$2.05 to $2.099 25.50%