Fuel Levy - December 2023
Transport companies are traditionally high turnover low margin businesses whereby fluctuations in major cost areas can have an immediate effect on their viability. With fuel costs contributing to almost a third of our total transport costs it is imperative that Roadmaster seek to recover any movement.
Roadmaster has developed a “Fuel Levy Formula” that provides a fair and transparent calculation for the recovery of these volatile cost movements which is aligned with industry standards. The formula is based on the percentage movement of the fuel base rate multiplied by the percentage of fuel as a component of our total expenses. This means that we are only seeking to recover the actual extra cost of fuel to our business and not attempting to improve profit margins via a fuel levy.
When required the fuel levy will be adjusted up or down according to the calculation shown below. The change will automatically flow through to all freight movements from the date above. Fuel prices are based on AIP historial terminal gate pricing.
We thank you for your understanding in this matter and look forward to continuing to supply you a quality and sustainable transport service.
Base rate (Peg Rate)
|$0.934||AIP TGP @ 24/04/20|
|Base rate less rebate at the time base rate was set||$0.800||Base rate less fuel rebate of 13.36c/litre|
|Current cost /litre less rebate||$1.778||Current fuel cost less fuel rebate of 20.00 c/litre|
|Increase in cents from the base||$0.98|
|Increase as %||122.14%|
|Fuel cost as % to all running costs||27.00%|
|Current fuel price||$1.9780/litre||AIP average TGP - 16/10/23 to 15/11/23|
|Fuel levy from 01/12/23||32.98%|
|Fuel levy up until 30/11/23||36.42%|