The Ministry of Business, Innovation & Employment (“Index”) publishes the Weekly Oil Price Monitoring tables. The VFR is calculated using the ‘Average monthly diesel price (excl diesel taxes & GST)’.
To calculate the VFR for the current month we use the Index from two months earlier. For example, to calculate the July VFR, we use the Index price from May.
There are two key components to calculating the VFR;
This is the current price for our products/services that we offer.
Variable Fuel Rate
This is a percentage of your base rate, which is calculated by using that months VFR.
To calculate the total price, you pay for a product or service, the base price is multiplied by the Variable Fuel Rate and then added to the original base rate.
Base Price + (Base Price x VFR) = Total Price (excl GST)
The average monthly diesel price (excl diesel taxes and GST) is $1.25, which equates to a VFR of 2.00%.
If you purchase a book of Red 50’s at $315.00 + GST, the Variable Fuel Rate will be applied at 2.00%. This will calculate a VFR of $6.30 + GST, which will be added to your invoice.