FUEL SURCHARGE – From 1st December 2023 – 6.32%
During the month of February 2022, fuel prices rose considerably and continue to rise on a daily basis.
At Graylaw International, we feel the fairest way to calculate the surcharge is to take an average from the previous month’s fuel price and apply the relevant surcharge to the following month’s invoices.
We have created a fuel surcharge escalator mechanism so it is clear to see which surcharge is applied.
So how does it work?
We have created a matrix of fuel prices based on our fuel costs with the base rate being £0.99 per litre.
The average cost per litre for the prior month is compared to the base cost per litre to calculate a % increase.
Our fuel cost is on average 29.7% of our total cost base.
The surcharge is therefore calculated by applying 29.7% to the % increase in the cost of fuel.
Calculation – FSC effective 1st December 2023
Week Ended 5th Nov 2023 – 122.75 ppl
Week Ended 12th Nov 2023 – 122.12 ppl
Week Ended 19th Nov 2023 – 117.87 ppl
Week Ended 26th Nov 2023 – 117.5ppl
Average effective 1st December 2023 is 120.06ppl = 6.32% as calculated below and demonstrated on the Matrix Table
Please note that we will not apply a fuel surcharge unless prices increase by more the 3% of our base price of £0.99 per litre.