Variable Fuel Factor

With increases in fuel tax and the volatility of global oil prices in general, OCTO Group Limited advise that we are no longer able to absorb these rising costs and will be implementing a Fuel Adjustment Factor (FAF) on all our road sweeping services from 1st August 2022, subject to OCTO Group Limited terms and conditions.

The FAF will be added to the Base price of your invoice and is calculated on the Average Diesel Discounted Retail Price net of GST as notified by the MBIE weekly fuel price monitoring page on their website.

The total price you pay for our service will be made up of two components: Base Price; and Variable Price encompassing VFF (variable fuel factor) which is made up of FAF (fuel adjustment factor and RUC). In order to calculate the total price you pay, we add these two components together, round the total to the nearest cent, and then add GST. The VFF is calculated each month for the coming month to give you advance knowledge of what you can expect.

We have set the trigger point of the Variable Fuel Factor as of March 2021 to $1.27. We will continue to monitor and review our methodology managing the unpredictable costs of fuel, so you can be assured that you continue to receive the same high level of service and commitment.

Resources: https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-statistics-and-modelling/energy-statistics/weekly-fuel-price-monitoring/

VFF Percentage

May 2024

15%

April 2024 14.9%
March 2024 14.7%
February 2024 13.7%
January 2024 14.9%
December 2023 15.4%
November 2023 16.3%
October 2023 16.8%
September 2023 14.5%
August 2023 12.3%
July 2023 12%
June 2023 11.7%
May 2023 13.9%
April 2023 13.7%
March 2023 9.8%
February 2023 10.1%
January 2023 10.5%
December 2022 11.6%
November 2022 9.5%
October 2022 9.5%
September 2022 9.4%
August 2022 10.9%
July 2022 10.7%
June 2022 9.9%
May 2022 8.6%
April 2022 8.7%
March 2022 7.8%
February 2022 7.1%

How do we calculate our monthly FAF rate?

We monitor the national average diesel price weekly. On this page is a download of a weekly table which includes a column for “Diesel discounted_retail price”.

To calculate our FAF rate for the coming month, we simply take the last 4 weeks average of the above column (as at the last Tuesday of each month). This average is then benchmarked against a value of $1.27 (Historically established trigger point) and for every $0.01 over this threshold a FAF rate of 0.1% is applied.

This FAF rate remains in place for the coming month until the last Tuesday when the rate for the following month is calculated again.

If you would like a more information of how this works please don’t hesitate to contact us.

Road User Charges

Recently the government announced another increase to the current Road User Charges (RUC’s). As such please be aware that effective June 29th 2020 RUC charges will increase from 4.2% to 4.5%.

Date

June 2020

July 2019

October 2018

July 2015

RUC %

4.5%

4.2%

3.9%

3.1%

Diesel Price (Incl GST)

$

$1.67

$1.68

$1.69

VFF %

5.0%

5.1%

5.2%

$

$1.70

$1.71

$1.72

$1.73

$1.74

$1.75

$1.76

$1.77

$1.78

$1.79

VFF %

5.3%

5.4%

5.5%

5.6%

5.7%

5.8%

5.9%

6.0%

6.1%

6.2%

$

$1.80

$1.81

$1.82

$1.83

$1.84

$1.85

$1.86

$1.87

$1.88

$1.89

VFF %

6.3%

6.4%

6.5%

6.6%

6.7%

6.8%

6.9%

7.0%

7.1%

7.2%

$

$1.90

$1.91

$1.92

$1.93

$1.94

$1.95

$1.96

$1.97

$1.98

$1.99

VFF %

7.3%

7.4%

7.5%

7.6%

7.7%

7.8%

7.9%

8.0%

8.1%

8.2%

$

$2.00

$2.01

$2.02

$2.03

$2.04

$2.05

$2.06

$2.07

$2.08

$2.09

VFF %

8.3%

8.4%

8.5%

8.6%

8.7%

8.8%

8.9%

9.0%

9.1%

9.2%

$

$2.10

$2.11

$2.12

$2.13

$2.14

$2.15

$2.16

$2.17

$2.18

$2.19

VFF %

9.3%

9.4%

9.5%

9.6%

9.7%

9.8%

9.9%

10.0%

10.1%

10.2%

$

$2.20

$2.21

$2.22

$2.23

$2.24

$2.25

$2.26

$2.27

$2.28

$2.29

VFF %

10.3%

10.4%

10.5%

10.6%

10.7%

10.8%

10.9%

11.0%

11.1%

11.2%

$

$2.30

$2.31

$2.32

$2.33

$2.34

$2.35

$2.36

$2.37

$2.38

$2.39

VFF %

11.3%

11.4%

11.5%

11.6%

11.7%

11.8%

11.9%

12.0%

12.1%

12.2%

$

$2.40

$2.41

$2.42

$2.43

$2.44

$2.45

$2.46

$2.47

$2.48

$2.49

VFF %

12.3%

12.4%

12.5%

12.6%

12.7%

12.8%

12.9%

13.0%

13.1%

13.2%

$

$2.50

$2.51

$2.52

$2.53

$2.54

$2.55

$2.56

$2.57

$2.58

$2.59

VFF %

13.3%

13.4%

13.5%

13.6%

13.7%

13.8%

13.9%

14.0%

14.1%

14.2%

$

$2.60

$2.61

$2.62

$2.63

$2.64

$2.65

$2.66

$2.67

$2.68

$2.69

VFF %

14.3%

14.4%

14.5%

14.6%

14.7%

14.8%

14.9%

15.0%

15.1%

15.2%

$

$2.70

$2.71

$2.72

$2.73

$2.74

$2.75

$2.76

$2.77

$2.78

$2.79

VFF %

15.3%

15.4%

15.5%

15.6%

15.7%

15.8%

15.9%

16.0%

16.1%

16.2%

$

$2.80

$2.81

$2.82

$2.83

$2.84

$2.85

$2.86

$2.87

$2.88

$2.89

VFF %

16.3%

16.4%

16.5%

16.6%

16.7%

16.8%

16.9%

17.0%

17.1%

17.2%

$

$2.90

$2.91

$2.92

$2.93

$2.94

$2.95

$2.96

$2.97

$2.98

$2.99

VFF %

17.3%

17.4%

17.5%

17.6%

17.7%

17.8%

17.9%

18.0%

18.1%

18.2%

$

$3.00

$3.01

$3.02

$3.03

$3.04

$3.05

$3.06

$3.07

$3.08

$3.09

VFF %

18.3%

18.4%

18.5%

18.6%

18.7%

18.8%

18.9%

19.0%

19.1%

19.2%

$

$3.10

$3.11

$3.12

$3.13

$3.14

$3.15

$3.16

$3.17

$3.18

$3.19

VFF %

19.3%

19.4%

19.5%

19.6%

19.7%

19.8%

19.9%

20.0%

20.1%

20.2%

$

$3.20

$3.21

$3.22

$3.23

$3.24

$3.25

$3.26

$3.27

$3.28

$3.29

VFF %

20.3%

20.4%

20.5%

20.6%

20.7%

20.8%

20.9%

21.0%

21.1%

21.2%

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