Euro-Tran Fuel Surcharge Management
Euro-Tran Despatch Fuel Surcharge Matrix.
Based on the AA average fuel price index, we bench mark our fuel surcharge on the following matrix.(Courtesay of DPD) We avoided any surcharge as long as possible and eventually had to introduce a 2.5% surcharge, and later then increased it further to 4.5%, At all times we were well behind our competitors on both introduction, and to what extent it was applied.
A substantial fall in fuel prices (diesel down to £1.07 pence per litre) in October/November 2008 led us to believe this would continue into the new year and we would rapidly see fuel fall to a figure we could consider the option to reduce the surcharge down to 2.5%. However despite a barrel of Oil dropping to a third of itspeak price this has not been the case with fuel hovering around the £1.00 mark. In recent weeks it has actually increased. This is arguably due to the fall in the value of sterling. It is all very confusing with some carriers one minute carrying a 10% surcharge then dropping it altogether. Constant change is unworkable. The change is necessitated by how, and when they in fact purchase their bulk diesel.
It is our intention to make two downward changes to the fuel surcharge, The first will kick in at 85p and take the surcharge down to 2.5%……In theory the removal of the charge would be at the 75p mark, However if an element of stability came into the market place we may drop it earlier. It is our intention to keep all other rates stable for the foreseeable future.
THE DPD FUEL MATRIX.
from 72.4p to 74.3p 1.00% Benchmark to remove
from 74.3p to 76.3p 1.30% surcharge (75p)
from 76.3p to 78.3p 1.60%
from 78.3p to 80.2p 1.90%
from 80.2p to 82.2p 2.20%
from 82.2p to 84.1p 2.50% Benchmark for 2.5%
from 84.1p to 86.1p 2.80% surcharge (85p)
from 86.1p to 88.0p 3.10%
from 88.0p to 90.0p 3.40%
from 90.0p to 92.0p 3.70%
from 92.0p to 93.9p 4.00%
from 93.9p to 95.9p 4.30%
from 95.9p to 96.5p 4.60%
from 96.5p to 97.8p 4.70%
from 97.8p to 99.8p 4.90% Benchmark for 4.5%
from 99.8p to 101.7p 5.20% surcharge was never
from 101.7pto 103.7p 5.50% exceeded
from 103.7pto 105.7p 5.80%
from 105.7pto 107.7p 6.10%
from 107.7pto 109.7p 6.30%