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.

As you are aware, with the recent geopolitical developments in the Middle East there have been significant volatility and upward pressure on global fuel markets. Diesel prices are directly influenced by these global factors hence we are experiencing rapid upward changes in fuel costs that are outside our normal budgeted ranges.

Due to the current unusual dynamic market conditions, we need to temporarily adjust how fuel cost recovery is applied.

Starting from this week Friday 20 March we will be moving to a shorter review cycle of our FAF from monthly to fortnightly, with implementation effective the following Monday. 

Please note that this measure is only temporary while fuel markets continue to experience exceptional volatility.  Once these markets stabilise, we will revert to our standard monthly FAF review.

From Date