Fuel adjustment factor reviewed monthly
Stevenson Aggregates has experienced significant increases in fuel costs over the past 6 months and unfortunately, we are anticipating this will continue for the foreseeable future.
From 1 July 2022, Stevenson Aggregates will be applying a FAF (Fuel Adjustment Factor) to all transport services and products purchased. FAF is a variable fuel surcharge used to account for changes in costs of fuel at the pump and will be reviewed monthly. Stevenson Aggregates believes this is the fairest way to account for ongoing fuel cost fluctuations.
Stevenson Aggregates will look back and review the price change using the MBIE Weekly Fuel Price Monitoring Web Page.
The Weekly Table – Column M (Weekly Diesel Retail Price) under “Data and Data Sources” will be used to establish the previous months FAF percentage adjustment.
For every 10c price change from the starting base price at the end of the month, a 1.5% price adjustment will be applied to all product (transport and products) purchases for the following month.
The next FAF pricing review will be undertaken on the 1st of August 2022 and every month after that until further notice. Stevenson Aggregates will use the last week of the month’s provisional price in column M to calculate the adjustment. FAF will appear as a separate line on the invoice.
The starting base rate as of 17 June 2022 is 289.64 cents. Future FAF adjustments cannot drop below the starting base rate.
If you have any questions regarding this FAF formula, please do not hesitate to contact your relevant Account Manager.