Fuel Surcharge
Escalator
Weekly fuel price update
The current average price is 117.5 which will relate
to invoices dated 20/02/2012
Due to the continuing volatility and recent increases in the price of fuel, Contact Transport are committed to providing our customers with a transparent fuel surcharge structure, and with this is mind we are introducing a new system applicable for ALL movements booked as of Monday 4th April 2011.
The new Escalator will provide a fluctuating surcharge which will track our average weekly buying price of fuel (Net of VAT) for the preceding week and increase/decrease dependent on those purchasing costs. The weekly price will be published on our website every Monday by 1000am.
We believe that by using a predetermined index based system on our actual cost of fuel, we are able to provide our customers with certainty about how our charges will move assisting in budgeting and pricing.
We last applied a surcharge increase in January 2011 when the average purchase price of fuel was at 107.5pence per litre (ppl). To alleviate some of the burden within this realignment we have set the base price for the purpose of the escalator at 110.5ppl.
The table shows how the escalator will work, essentially for every 1p increase or decrease in our average weekly purchase price the surcharge will automatically adjust up or down by 0.25%. Example: This week's average purchase price was 114.5p. Thus If your current fuel surcharge is set at 11% the movement of 4p will mean an increase of 1% to your surcharge (4 x 0.25%). Conversely if the rate dropped to 106.5p your surcharge would decrease by 1%.
'Please refer to calculation table on the right hand side of this page'.