FAF RATE
FAF RATE: 30th March - 5th April 2026
28.8%
IMPORTANT NOTICE: MARKET VOLATILITY
With the recent rise in tensions in the Middle East, there has been heightened instability in global oil markets, resulting in sharp and unexpected fuel price increases. In response to this volatility, we are moving to weekly FAF reviews, effective from 16 March 2026. We will return to our standard monthly reviews once fuel markets stabilise.
Note: As part of this change, we have also updated our FAF calculation methodology to use a 2‑week rolling average, rather than the previous 4‑week average, allowing the rate to better reflect current market conditions. The calculation continues to be based on MBIE weekly diesel fuel data (see below).
FUEL ADJUSTMENT FACTOR (FAF) EXPLAINED
FAF is a variable rate used by the transport industry to manage fluctuations in the monthly cost of diesel fuel and the impact that has on operating costs. Fuel is a major cost component of our business and prices can change daily, resulting in significant variations over the course of time. FAF enables Normans to fairly and transparently manage these fluctuations on all customer accounts.
| MONTH | FAF RATE (%) |
|---|---|
| 23rd to 29th Mar-26 | 16.8% |
| 16th to 22nd Mar-26 | 12.0% |
| 1st to 15th Mar-26 | 10.4% |
| Feb-26 | 10.4% |
| Jan-26 | 11.2% |
| Dec-25 | 11.2% |
WHAT IS FAF BASED ON?
FAF continues to be based on the Ministry of Business, Innovation and Employment (MBIE) weekly diesel fuel monitoring data click here.
However, during the current period of fuel market volatility, our methodology for calculating FAF has changed to a 2-week rolling average of the ‘weekly national diesel discounted retail price’, rather than the previous 4-week average.
For every $0.05 increase in this average above $1.249, the FAF rate increases by 0.8%.
For example, if the two‑week national average is:
$1.32 — the FAF rate will be 1.6%
$1.46 — the FAF rate will be 4.0%
FAF MONTHLY UPDATE
We will keep you, our valued customer informed in advance of any changes to our FAF rate. Enter your contact details if you wish to receive our FAF rate notification on the last week of each month.
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