FUEL SURCHARGE – From 7th March 2022 – 6.68%
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 March 2022 surcharge
Week Ended 6th February 2022 – £1.169
Week Ended 13th February 2022 – £1.252
Week Ended 20th February 2022 – £1.190
Week Ended 27th February 2022 – £1.239
Average for the month of February 2022 was £1.2125 – The fuel surcharge from 7th March 2022 – 31st March 2022 is 6.68% 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.