Ports of Auckland has in place a formula for calculating the Fuel Adjustment Factor (FAF) to compensate our business as and when the price of fuel fluctuates. This process has been in place since August 2006 and we have continued to keep customers informed of the trend to the changing purchase price of fuel.
The calculation used to determine the Fuel Adjustment Factor is based on current pricing, working in bands of +/- 20%. If the six week average triggers a move up or down, the following formula applies with two weeks’ notice of change.
The 6 weekly average for FAF as at 18 February 2022 has moved into the +21% to +40% tier. Based on this information, FAF will be charged as per the schedule below, effective 7 March 2022 being two weeks from today.
The application of the FAF model will remain in place and in the event fuel prices increase and the 6 week average triggers re-introduction of the surcharge we will advise customers accordingly with two weeks’ notice of change.
For your information our buy prices of fuel are based on the MOPS (Mid of Platts Singapore) Gas/Oil Index adjusted for exchange rate movements and shipping. We continue to have the application of FAF audited by an external third party and examples of the audit letter can be found on our website. Please don’t hesitate to contact the below for a copy if required.