FAF for March 2026 is set at 31%
Variations in diesel costs can significantly affect the financial outcomes of transport businesses.
To mitigate the effects of an unpredictable fuel market, most transport firms adopt a Fuel Adjustment Factor (FAF). Furthermore, the government has announced hikes in both Excise tax and Road User charges, starting from 1st July 2020. These increments will be incorporated into the monthly FAF computation, as demonstrated in the example below.
| Fuel Surcharge | RUC Surcharge | Total Fuel and RUC |
|---|---|---|
|
7.0% |
0.7% |
7.7% |
The FAF and RUC surcharge are determined based on the average diesel pump price observed during the prior month. On the first day of each subsequent month, the applicable FAF percentage for that month is applied.
Below is a table detailing our method for calculating the FAF and RUC surcharge, taking into account the latest Auckland fuel levy and the hike in RUC charges, with the most recent adjustment coming into effect on 1st July 2020.
| Diesel Pump Price | FAF Percentage |
|---|---|
|
$1.05 to $1.09 |
0% |
|
$1.10 to $1.14 |
1.7% |
|
$1.15 to $1.19 |
2.7% |
|
$1.20 to $1.24 |
3.7% |
|
$1.25 to $1.29 |
4.7% |
|
$1.30 to $1.34 |
5.7% |
|
$1.35 to $1.39 |
6.7% |
|
$1.40 to $1.44 |
7.7% |
|
$1.45 to $1.49 |
8.7% |
|
$1.50 to $1.54 |
9.7% |
|
$1.55 to $1.59 |
10.7% |
|
$1.60 to $1.64 |
11.7% |
|
$1.65 to $1.69 |
12.7% |
|
$1.70 to $1.74 |
13.7% |
|
$1.75 to $1.79 |
14.7% |
|
$1.80 to $1.84 |
15.7% |
|
$1.85 to $1.89 |
16.7% |