FAF RATE
April 2024 FAF RATE:
16.0%
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 (%) |
|---|---|
| Apr-24 | 15.2% |
| Mar-24 | 14.4% |
| Feb-24 | 14.4% |
| Jan-24 | 14.4% |
| Dec-23 | 16.8% |
WHAT IS FAF BASED ON?
FAF is based on the Ministry of Business and Enterprise’s (MBIE) weekly monitoring table click here. Using this information, Norman’s calculate the average of the ‘weekly national diesel discounted retail price’ for the last four weeks. Each time this average diesel cost increases by $0.05 above $1.249, the FAF rate rises by 0.8%.
For example, if last month’s 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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