Domestic fuel adjustments

Fuel Adjustment Factor



Road User Charges

Recently the government announced another increase to the current Road User Charges (RUC's).
As such please be aware that effective July 1 2019 RUC charges will increase from 3.9% to 4.2%.
Click here for more information.


Earthquake Recovery Surcharge

A disruption surcharge on inter island freight movements between the North and South Islands in both directions currently applies. Click here for more information.


Domestic Fuel Adjustment Factor Table




Domestic Fuel Adjustment Factor FAQ

What is a Fuel Adjustment Factor (FAF)?

The Fuel Adjustment Factor (FAF) is a charge that is applied to Domestic Courier Services to off-set the current fuel volatility. The total price you pay for a courier product/service will comprise of two components – the base price and the fuel adjustment factor. Multiplying the base price by the fuel adjustment factor will give the total price.

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How much will the FAF cost me?

The FAF 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)

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How will this impact my business?

We will be using a base rate of $0.95 (diesel pump price including GST) for domestic courier services.

Every 1c movement above $0.95, in the average pump price*, will result in a 0.1% increase in our pricing. FAF will be rounded up to the nearest cent; this is updated monthly and will be automatically adjusted on your invoice.

The rates for our Fuel Adjustment Factor will be recalculated on a monthly basis.

Nationally and globally, the courier and transportation markets have seen massive increases in fuel prices. In the past, Post Haste Couriers has tried hard to absorb these costs, minimising the impact on our customers. Unfortunately prices have come to a level where we must follow other transport operators in implementing a "fuel surcharge" system. If road user charges continue to increase we may look to incorporate this into our FAF methodology at a future date.

*Average diesel price (adjusted for regional fuel taxes) as published by the Ministry of Economic Development - we will calculate the FAF for any given month using the average diesel prices from two months earlier.

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Will I be notified of each increase?

Our website will be updated each month detailing the increase/decrease for that month. You can find this page in our Useful Information section.

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How does Emissions Trading Scheme impact FAF?

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.climatechange.govt.nz/emissions-trading-scheme.

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What is the "base rate" at which I will be charged FAF?

The FAF base rate as of 1st August 2011 is $0.95.

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