FAF

The FAF for April 2024 will be 4.50%.  This is made up of the average of the previous 4 weeks:

1st March220.0891
8th March220.0891
15th March220.0891
22nd March220.9462
Average220.3034
April 20244.50%
March 20243.75%
February 20242.25%
January 20243.00%
December 20235.25%
November 20236.75%
October 20236.00%

On 1 October 2023, Regal Haulage introduced a  Fuel Adjustment Factor (FAF).  This was necessitated by the ever changing and of late, the rapid increase in the cost of diesel.       

For full transparency, Regal Haulage will be using the widely published and widely used MBIE weekly fuel pricing index.   A link to the index is below (Diesel_discounted_retail_price_NZc.p.l) – column M

https://www.mbie.govt.nz/assets/Data-Files/Energy/Weekly-fuel-price-monitoring/weekly-table.csv

For the purpose of establishing a baseline diesel price, we are using a rate of $1.90 per litre.    The FAF will be calculated on a monthly basis by using as close to the last day as possible, the average fuel price for the past 4 weeks.   

The FAF will then be calculated as per the below table based on what the average diesel price is.

Regal Haulage – FAF Adjustment Table (effective 1 October 2023)

Increment   FAF
155> 160-5.25%
160> 165-4.50%
165> 170-3.75%
170> 175-3.00%
175> 180-2.25%
180> 185-1.50%
185> 190-0.75%
190> 1950.00%
195> 2000.75%
200> 2051.50%
205> 2102.25%
210> 2153.00%
215> 2203.75%
220> 2254.50%
225> 2305.25%
230> 235   6.00%
235> 2406.75%
240> 2457.50%
245> 2508.25%
250> 2559.00%
255> 2609.75%
260> 26510.50%
265> 27011.25%
270> 27512.00%
Example: If diesel prices for the previous 4 weeks were 228.90, 230.90, 232.90 and 236.90 then the average is $232.40. This would result in a FAF of 6.00% being applied to your rates for the following month. 

If you have any questions regarding the FAF then please feel free to make contact with Peter Muir, Business Development Manager by e-mail at peter.muir@regalgroup.co.nz