FUEL SURCHARGE – From 1st August 2022 – 15.19%
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 the previous months 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 for August 2022 surcharge
Week Ended 3rd July 2022 – 157.18ppl
Week Ended 10th July 2022 – 145.50ppl
Week Ended 17th July 2022 – 145.50ppl
Week Ended 24th July 2022 – 150.02ppl
Week Ended 31st July 2022 – 150.02ppl
Average effective 1st August 2022 is 149.64ppl = 15.19% as calculated below and demonstrated on the Matrix Table.
Please note that we will note apply a fuel surcharge unless prices increase by more the 3% of our base price of £0.99 per litre.