Variable Fuel Component

Effective from Domestic shipments International shipments
1 Jan - 4 Feb 2012 3.1% 6.0%
5 Feb - 3 Mar 2012 3.8% 6.0%


COMMONLY ASKED QUESTIONS

Q: What is the VFC?
A: In addition to your standard tariff, TNT charges a variable fuel component (VFC) to derive the total price you pay for your shipment. The variable fuel component is calculated as a percentage of your usual tariff. We apply the VFC on the day of your shipment. All prices exclude GST (where applicable).

Q: Why does TNT apply an index-linked ?
A: By indexing our to a published crude oil spot price index, we are better able to keep pace with fluctuations in the cost of fuel.  It shows price fluctuations which are linked to fuel, while your base tariff remains subject to less frequent variations influenced by factors other than the cost of fuel.

Q: Why is TNT using an index linked to Dubai Crude Oil (Fateh) oil prices?
A: We base our index-linked VFC on the average Dubai Crude Oil (Fateh) spot price, as crude oil is the base product in jet fuel and truck diesel used in air and road transportation and this index will enable us to keep pace with fluctuations in the price of fuel on a month by month basis.

Q: Why is TNT using an index based on the average New Zealand weekly diesel price for domestic shipments?
A: We base our domestic index-linked VFC on the average New Zealand weekly diesel price. We use the weekly average diesel price figure to calculate the average diesel price for each calendar month. An index based locally for local deliveries links the VFC to the prevailing domestic market price for diesel which in turn influences fluctuations in our actual fuel costs.

Q: How does the index correspond with the VFC each month?
A: The index tables below show average Dubai Crude Oil (Fateh) spot price bands and average monthly diesel price bands with a corresponding applicable VFC for our international and domestic services.

Q: Is the VFC used to calculate my total shipment price determined with reference to the indexed price of fuel that month?
A: No, due to the release dates of fuel price data, there is a two month lag in the application of the index. For example, the monthly average price for Dubai Crude Oil (Fateh) in February will be used to determine the applicable VFC in April.

Q: How will I be updated on the VFC?
A: The VFC is adjusted on the first working day of every month and is published here on our website.

We recommend you check our website for regular updates.

In addition, the VFC applying to your shipments will also appear as a separate item on your TNT invoice. This will be coded as FSI for international shipments and FSF for domestic shipments.

Q: Where can I find market information in relation to fuel cost developments?
A: The average Dubai Crude Oil (Fateh) spot price, in US$ per barrel, is sourced from the International Monetary Fund (IMF). Details can be found here.

For Domestic shipments the weekly average diesel price is published in NZ$ per litre by the Ministry of Economic Development. Details can be found here.

 

International Index

Fateh Crude Oil Spot Price US$ per Barrel

Applicable VFC

At least

But less than

0

57.40

0.00%

57.41

61.80

0.50%

61.81

66.20

1.00%

66.21

70.60

1.50%

70.61

75.00

2.00%

75.01

79.40

2.50%

79.41

83.80

3.00%

83.81

88.20

3.50%

88.21

92.60

4.00%

92.61

97.00

4.50%

97.01

101.40

5.00%

101.41

105.80

5.50%

105.81

110.20

6.00%

110.21

114.60

6.50%

114.61

119.00

7.00%

119.01

123.40

7.50%

123.41

127.80

8.00%

127.81

132.20

8.50%

132.21

136.60

9.00%

136.61

141.00

9.50%

141.01

145.40

10.00%

145.41

149.80

10.50%

 

add 0.5% for each US$4.40 thereafter

Domestic Index (effective 7 August 2011)

Weekly average diesel retail price (NZ$ / ltr)

Applicable VFC %

At least

But less than
  $1.21 0.00%
$1.21 $1.22 0.10%
$1.22 $1.23 0.20%
$1.23 $1.24 0.30%
$1.24 $1.25 0.40%
$1.25 $1.26 0.50%
$1.26 $1.27 0.60%
$1.27 $1.28 0.70%
$1.28 $1.29 0.80%
$1.29 $1.30 0.90%
$1.30 $1.31 1.00%
$1.31 $1.32 1.10%
$1.32 $1.33 1.20%
$1.33 $1.34 1.30%
$1.34 $1.35 1.40%
$1.35 $1.36 1.50%
$1.36 $1.37 1.60%
$1.37 $1.38 1.70%
$1.38 $1.39 1.80%
$1.39 $1.40 1.90%
$1.40 $1.41 2.00%
$1.41 $1.42 2.10%
$1.42 $1.43 2.20%
$1.43 $1.44 2.30%
$1.44 $1.45 2.40%
$1.45 $1.46 2.50%
$1.46 $1.47 2.60%
$1.47

$1.48

 2.70%
$1.48 $1.49 2.80%
$1.49 $1.50 2.90%
$1.50 $1.51 3.00%
$1.51 $1.52 3.10%
$1.52 $1.53 3.20%
$1.53 $1.54 3.30%
$1.54 $1.55 3.40%
$1.55 $1.56 3.50%
$1.56 $1.57 3.60%
$1.57 $1.58 3.70%
$1.58 $1.59 3.80%
$1.59 $1.60 3.90%
$1.60 $1.61 4.00%
$1.61 $1.62 4.10%
$1.62 $1.63 4.20%

$1.63

$1.64

4.30%

$1.64

$1.65

4.40%

$1.65

$1.66

4.50%

$1.66

$1.67

4.60%

$1.67

$1.68

4.70%

$1.68

$1.69

4.80%

$1.69

$1.70

4.90%

$1.70

$1.71

5.00%

$1.71

$1.72

5.10%

$1.72

$1.73

5.20%

$1.73

$1.74

5.30%

$1.74

$1.75

5.40%

$1.75

$1.76

5.50%

$1.76

$1.77

5.60%

$1.77

$1.78

5.70%

$1.78

$1.79

5.80%

$1.79

$1.80

5.90%

$1.80

$1.81

6.00%

$1.81

$1.82

6.10%

$1.82

$1.83

6.20%

$1.83

$1.84

6.30%

$1.84

$1.85

6.40%

$1.85

$1.86

6.50%

$1.86

$1.87

6.60%

$1.87

$1.88

6.70%

$1.88

$1.89

6.80%

$1.89

$1.90

6.90%

$1.90

$1.91

7.00%

$1.91

$1.92

7.10%

$1.92

$1.93

7.20%

 

 

add 0.1% for each NZ cent thereafter