| OUR AVERAGE BULK BUYING COST FOR
JULY 2010 WAS 97 PENCE PER LITRE |
| CURRENT FUEL PRICE WEEK COMMENCING
26TH JULY 2010 IS 96.39 PENCE PER LITRE |
Previously we reviewed and
adjusted our fuel surcharge on a weekly basis. The current
climate has seen very volatile fuel prices, and to protect
our customers from constant fluctuations in their transport
costs, we have decided to inject some stability into our fuel
surcharge procedure. From 1st October 2008 we have been adjusting
our fuel surcharge every month based on the average of the
previous month's costs. |
The majority of rate schedules
are set on a base cost of 78 pence per litre. However major
account customers have individually negotiated surcharges
which may differ from the illustration below. |
The following table illustrates
the effect of fuel price increases on our operating costs.
Fuel costs reached nearly 110 pence per litre in July 2009,
before dropping for a while, but our bulk purchase price has
increased significantly in recent weeks. |
We have traditionally worked on the basis that every 1 pence per litre difference in fuel impacts on overall costs by .5%. However if fuel costs escalate to over 100 pence per litre there is a slight proportionate reduction in how the increases affect operating costs. Therefore where fuel costs are above a bulk buying cost of 100 pence per litre, our corresponding fuel surcharge is adjusted to .25% as shown below. |
| |
Pence per litre |
78 |
79 |
80 |
81 |
82 |
83 |
84 |
85 |
86 |
87 |
88 |
Fuel surcharge % |
0.0 |
0.5 |
1.0 |
1.5 |
2.0 |
2.5 |
3.0 |
3.5 |
4.0 |
4.5 |
5.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Pence per litre |
89 |
90 |
91 |
92 |
93 |
94 |
95 |
96 |
97 |
98 |
99 |
Fuel surcharge % |
5.5 |
6.0 |
6.5 |
7.0 |
7.5 |
8.0 |
8.5 |
9.0 |
9.5 |
10.0 |
10.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Pence per litre |
100 |
101 |
102 |
103 |
104 |
105 |
106 |
107 |
108 |
109 |
110 |
Fuel surcharge % |
11.0 |
11.25 |
11.5 |
11.75 |
12.0 |
12.25 |
12.5 |
12.75 |
13.0 |
13.25 |
13.5 |
| |
|
|
| Register your protest on the planned fuel tax increases (October 2007) |