VFR and RUC

Road User Charges effective 1 December 2018

As your preferred courier specialist, we endeavour to provide a consistent and reliable service at a competitive price. Due to the nature of the industry, external factors can often impact the prices that we charge.

As of 1 October 2018, the New Zealand Transport Agency introduced new Road User Charges (RUC) which impact a range of vehicles across our Fastway courier fleet. To offset these charges and ensure we can continue to provide you with an exceptional level of service, we will be implementing a RUC surcharge of 0.8% effective 1 December 2018.  

All transport companies nationwide will be impacted, these surcharges are expected to be rolled out across the industry. For more information about the Fastway RUC surcharge, please don't hesitate to contact us. 

 

The current VFR and RUC% for our domestic services are:

 

MONTH VFR RUC TOTAL
December 2018 3.2% 0.8% 4.0%
November 2018 3.0% 0.0% 3.0%

*refer VFR and RUC 2-month lag *

Click here to see previous months rates

Click here to see Auckland Regional Fuel Tax surcharge 

As your preferred courier specialist, we endeavour to provide a consistent and reliable service at a competitive price. Due to the nature of the industry, external factors can often impact the prices that we charge.

As of 1 October 2018, the New Zealand Transport Agency introduced new Road User Charges (RUC) which impact a range of vehicles across our Fastway courier fleet. To offset these charges and ensure we can continue to provide you with an exceptional level of service, we will be implementing a RUC surcharge of 0.8% effective 1 December 2018.  

All transport companies nationwide will be impacted, these surcharges are expected to be rolled out across the industry. For more information about the Fastway RUC surcharge, please don't hesitate to contact us. 

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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 business;

  • Your 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 our 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:

 

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 rates (2018)

MONTH

VFR

RUC

TOTAL

January     

 0.4%

     0.0%

0.4%

February 

 0.5%

     0.0%

0.5%

March 

 0.5%

     0.0%

0.5%

April 

 0.5%

     0.0%

0.5%

May

 0.0%

     0.0%

0.0%

June 

0.5%

     0.0%

0.5%

July 

1.6% 

     0.0%

1.6%

August 

1.7%

     0.0%

1.7%

September

1.5%

     0.0%

1.5%

October

2.2%

     0.0%

2.2%

November 

3.0%

     0.0%

3.0%

December

3.2%

    0.8%

4.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Road User Charges and Auckland Regional Fuel Tax surcharge effective 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 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 Auckland region.

 

MONTH VFR RUC ARFT TOTAL
December 2018 3.2% 0.8% 1.5% 5.5%
November 2018 3.0% 0.0% 0.0% 3.0%