VFR and RUC

Road User Charges- Introduced 1 December 2018

As of 1st December 2018, Fastway Couriers introduced a surcharge of 0.8% to offset the new Road User Charges (RUC) implemented by the New Zealand Transport Agency.

Due to the nature of the industry, majority of transport companies across the nation were impacted and introduced surcharges of their own. 

For any queries regarding the Fastway Couriers RUC surcharge, please contact your local Regional Franchise to discuss further. 

The current VFR and RUC% for our domestic services are:
MONTH VFR RUC TOTAL
April 2019  0.6% 0.8% 1.4%
March 2019 0.0% 0.8% 0.8%

*refer VFR and RUC 2-month lag *

Click here to see previous months rates
Click here to see Auckland Regional Fuel Tax surcharge

 

Variable Fuel Rate - Introduced 1 July 2018 

As the cost of fuel is one of the most significant and fluctuating factors to the transport industry, the adoption of a Variable Fuel rate allows this cost to evolve whilst your base freight rates remain the same. The Variable Fuel Rate (VFR) is a surcharge that has been introduced effective 1 July 2017 to cover the dynamic cost of fuel and can provide many advantages to your businessYour VRF and freight rates are separate so rates will not need to be renegotiated every time fuel prices change;

  • VFR built into your freight rates can be higher to account for the inflation of fuel, keeping them separate means that you benefit from falling fuel prices;
  • When the price of fuel decreases, so will your VFR; &
  • The rates are transparent and displayed so you can at any point determine how the rates are calculated.

At the beginning of each month, the VFR will be calculated based on the average price of diesel.

 

Calculating the Variable Fuel Rate

There are two key components in calculating the VFR;

1. Base price
This is the current price for the products/services that we offer.

2. 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 then added to the original base rate.

Base Price + (Base Price x VFR) = Total Price (excl GST)

 

For example:

If the base rate is $5.00 and the current VFR is 2.00%, the total price would be $5.10 + GST.

$5.00 + (5.00 x 2.00% VFR) = $5.10 + GST
Base Price + (Base Price x VFR) = Total Price + GST

Two Month Lag
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.

Average Diesel Price
The Ministry of Business, Innovation & Employment (“Index”) publishes the Weekly Oil Price Monitoring tables. The VFR is calculated using the 'Average diesel main port price less taxes, levies and ETS (Emissions Trading Scheme)' This index is available here on the Ministry’s website.

When is the VFR applied?
As of 1 July 2017, our VFR uses a Baseline Diesel (Index) price of $1.05. The ‘trigger point’ for when the VFR is applied is when there is movement of $0.01c above the Index price of $1.05. If the average diesel price for the month including taxes is $1.05 or below, then no VFR will apply for that month.

The VFR for each month alters according to the average monthly diesel price as shown below

 

VFR and Average Monthly Diesel Price Table

Average monthly 
diesel price

(Less taxes, levies and ETS)
Greater than:

Average monthly 
diesel price 

(Less taxes, levies and ETS)
Less than or equal to:

Variable Fuel Rate (VFR)

1.04

1.05

0.00%

1.05

1.06

0.10%

1.06

1.07

0.20%

1.07

1.08

0.30%

1.08

1.09

0.40%

1.09

1.10

0.50%

1.10

1.11

0.60%

1.11

1.12

0.70%

1.12

1.13

0.80%

1.13

1.14

0.90%

1.14

1.15

1.00%

1.15

1.16

1.10%

1.16

1.17

1.20%

1.17

1.18

1.30%

1.18

1.19

1.40%

1.19

1.20

1.50%

1.20

1.21

1.60%

1.21

1.22

1.70%

1.22

1.23

1.80%

1.23

1.24

1.90%

1.24

1.25

2.00%

1.25

1.26

2.10%

1.26

1.27

2.20%

1.27

1.28

2.30%

1.28

1.29

2.40%

1.29

1.30

2.50%

1.30

1.31

2.60%

1.31

1.32

2.70%

1.32

1.33

2.80%

1.33

1.34

2.90%

1.34

1.35

3.00%

1.35

1.36

3.10%

1.36

1.37

3.20%

1.37

1.38

3.30%

1.38

1.39

3.40%

1.39

1.40

   3.50%

1.40

1.41

3.60%

1.41

1.42

3.70%

1.42

1.43

3.80%

1.43

1.44

3.90%

1.44

1.45

4.00%

1.45

1.46

4.10%

1.46

1.47

4.20%

1.47

1.48

4.30%

1.48

1.49

4.40%

1.49

2.50

4.50%

1.50

2.51

4.60%

 

Previous months VFR and RUC rates (2018/2019)

MONTH

VFR

RUC

TOTAL

April 2018

 0.5%

 0.0%

0.5%

May 2018

 0.0%

 0.0%

0.0%

June 2018

0.5%

 0.0%

0.5%

July 2018

1.6% 

 0.0%

1.6%

August 2018

1.7%

 0.0%

1.7%

September 2018

1.5%

 0.0%

1.5%

October 2018

2.2%

 0.0%

2.2%

November 2018

3.0%

 0.0%

3.0%

December 2018

3.2%

 0.8%

4.0%

January 2019

1.8%

 0.8%

2.6%

February 2019

0.1%

0.8%

0.9%

March 2019

0.0%

0.8%

0.8%

April 2019

0.6%

0.8%

1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 Auckland Regional Fuel Tax surcharge, RUC, and VFR
- Introduced 1st December 2018

As you are aware, an Auckland Regional Fuel Tax (ARFT) of $0.10 per litre (excl. GST) came into effect as of 1st July 2018. Over the last few months, we have been reviewing the impact on our courier franchisee cost base to determine the most appropriate way to pass this new cost of business onto our customers.

As you can appreciate, fuel expenditure is one of our most significant operating costs as a transport service provider. Therefore, and to ensure that we continue to fairly remunerate our Courier Franchisees and offset increases in our linehaul business we will be introducing an ARFT surcharge of 1.5%. This will be applied to our monthly VFR and RUC surcharge. As the ARFT is only applicable to the Auckland region, this will not be applied to our customer base outside of the Auckland region.

MONTH VFR RUC ARFT TOTAL
April 2019  0.6% 0.8% 1.5% 2.9%
March 2019 0.0% 0.8% 1.5% 2.3%