FAF (Fuel Adjustment Factor)

The last six+ months of applicable FAF rates are summarised below.  Note that FAF rates do not get lower than 0%.  This is partly related to the historical relationship between fuel prices and exchange rates and non-fuel inflationary pressures.  If fuel costs fall below base rates for a sustained period, not offset by corresponding non-fuel costs, then rates can be adjusted accordingly.

We also provide a link here to access the MBIE fuel cost data.  This is the rate used in calculating FAF.  The formula is partly historic, and partly looks at the gradient and momentum of change to build in an expectation level for the next four week period.  If the cost of fuel dramatically rises or falls during a month we may adjust it within the period.

The 36% reduction in RUC was reinstated from 1 March 2023 to 30 June 2023 as announced by the Government, and we have calculated the equivalent reduction for our FAF.  Therefore, we had reduced our FAF by 2% as from 1 March 2023 to 30 June 2023.  Please note that the base FAF will still be updated monthly or when deemed necessary.

The 36% reduction in RUC equivalent to 2% FAF has been removed from our FAF from 1 July 2023.

From Date