NZ Variable Fuel Factor

The current variable fuel factor % for domestic services is:
July 2026 (effective 13rd July)9.70%
July 2026 (effective 6th July)9.70%
June 2026 (effective 29th June)10.50%
June 2026 (effective 22nd June)11.30%
Click here to view previous month’s data

Overview

Fuel costs are understandably one of the most significant and variable cost components in the transport industry. The Variable Fuel Factor (VFF) was introduced for the purpose of providing for the increased costs in fuel, primarily diesel, to fairly compensate our couriers and line haul operators and to ensure a high level of transparency in our pricing model for our customers.

How the VFF works

  • The VFF is based on the average fuel price over a two-week period
  • Fuel pricing data is sourced from independently sourced data available through our primary supply arrangements
  • The applicable VFF is determined using the pricing table below
  • The VFF is reviewed and published weekly
  • Updates are provided with one week’s notice prior to taking effect

By using this mechanism, we can:

  1. Provide transparency for customers to see how it is calculated
  2. Take into account any shifts in the price of fuel that impact significantly on the price of moving courier items
  3. Pass on any reductions, should the price of fuel decrease
  4. Give New Zealand Couriers customers advanced notice of what the VFF will be a week in advance

International Courier Services will be subject to a separate Variable Fuel Factor1.

1The costs of our international services are strongly impacted by the cost of jet kerosene, and as a result require a separate International VFF.

FAQs

How often is the VFF updated?

The VFF is reviewed and may be updated weekly.

How do I find out the current rate?

Our website will be updated each week with the VFF surcharge for the following week. You can find the current rate here at the top of the Variable Fuel Factor page.

Why the VFF is reviewed regularly?

Fuel prices may experience periods of volatility. Regular review of the VFF supports a more timely reflection of fuel cost movements, while maintaining a structured and transparent approach.

What is the Fuel Price source?

Due to the suspension of MBIE fuel price data in March 2026, New Zealand Couriers uses independently sourced fuel pricing data available through its primary supply arrangements as the reference index.

Are there any other Surcharges?

The VFF primarily reflects changes in diesel fuel costs across the network. From time to time, additional surcharges may be applied to address other cost pressures impacting network operations, including but not limited to aviation fuel. Further information on applicable surcharges is available on our surcharge page.

What fuel prices are used to calculate the VFF?

The VFF is based on the average fuel price over a two-week period, using independently sourced data.

When do VFF changes take effect?

Domestic Courier Rates – We calculate the VFF percentage for any given week using the average diesel retail prices over a two week period (updates are provided with at least one week’s notice prior to taking effect). For every 2c movement, our rates will move by +/- 0.1% (Click here to see the “Variable Fuel Factor Increase Table”).

International Courier Rates – The costs of our international services are strongly impacted by the cost of jet kerosene and the Variable Fuel Factor will be dictated by our international partners (with jet kerosene being a key factor). This figure is adjusted monthly. Click here for specific information on our international VFF.

Does the VFF apply to all freight?

The VFF applies across the New Zealand Couriers network in accordance with our standard terms and conditions.

How is the VFF calculated?

The total price you pay for a courier product / service will comprise of four components – the base price of products / services, the Variable Fuel Factor, the Temporary Service Continuity surcharge (TSCS) and the RUC surcharge. This is calculated by multiplying the base price of the products/services by (the Variable Fuel Factor + Temporary Service Continuity surcharge + RUC surcharge), then adding this figure to the original base price to get the total price.

For example:

If a ticket costs $10.00 and the VFF for the month is 2.70% / TSCS is 1.2% / RUC surcharge is 2.00%, then:
Base price + base price x ( VFF + TSCS + RUC ) = Total Price + GST
$10.00 + $10.00 x ( 2.70% VFF + 1.2% TSCS + 2.00% RUC ) = $10.59 + GST
    VFF, TSCS and RUC surcharge = $0.59 + GST

The Variable Fuel Factor was introduced for the purpose of providing for the volatility in fuel prices to fairly compensate our couriers and line haul operators – whilst also ensuring our customers benefit from any drop in the price of fuel. For more information on RUC surcharge click here. For more information on TSCS click here.

How will the VFF appear on my invoice/statement?

We will include the VFF in the price of the charges listed on your invoice/statement. This allows you complete visibility as to the total price of each item.

How do I manage this increase within my business?

There is a one week lag to try and provide a buffer in regard to the latest increases, and each week we will post the VFF surcharge percentage for the next week on our website.

Why a different VFF for Domestic Courier Services and International Courier Services?

In terms of fuel, the greatest impact on our domestic courier network (i.e. within New Zealand) comes from movement in diesel prices; the greatest impact on our international courier network (i.e. exports/imports to/from New Zealand) comes from movement in jet kerosene prices.

Movements in diesel and jet kerosene prices are not always directly aligned – the purpose of the VFF is purely to pass on incremental costs, not increase margin, by creating separate VFFs we can offer our customers increased transparency.

How does the Emissions Trading Scheme impact the VFF?

The New Zealand Emissions Trading Scheme (ETS) is part of the Government’s primary response to global climate change. Effective 1st July 2010 an additional tax has been applied to fuel, and passed on through the pump price.

For more information on the ETS visit www.mfe.govt.nz/ets.

Variable Fuel Factor Increase Table

Diesel Price (incl GST)VFF increase
$0.953.10%
$0.96 – $0.973.20%
$0.98 – $0.993.30%
$1.00 – $1.013.40%
$1.02 – $1.033.50%
$1.04 – $1.053.60%
$1.06 – $1.073.70%
$1.08 – $1.093.80%
$1.10 – $1.113.90%
$1.12 – $1.134.00%
$1.14 – $1.154.10%
$1.16 – $1.174.20%
Click here to show more data