Overview

Fuel costs are one of the most significant and variable components in the transport industry. Like other courier providers, New Zealand Couriers uses a Variable Fuel Factor (VFF) to reflect changes in fuel costs—primarily diesel—across our network.

The VFF is designed to provide a transparent and structured way to adjust pricing in response to fuel cost movements, while supporting fair recovery of these costs across our operations.

By using this surcharge mechanism, we aim to:

• Provide transparency on how fuel-related costs are applied
• Reflect changes in fuel prices that impact the cost of moving freight
• Adjust pricing in line with both increases and decreases in fuel costs
• Provide advance notice of changes to support customer planning

How the VFF works

The VFF is:

• Based on the average diesel price over a two-week period
• Calculated using independently sourced fuel pricing data available through our primary supply arrangements
• Reviewed and updated weekly
• Published with at least one week’s notice prior to taking effect

This approach improves the responsiveness of the VFF to current fuel price movements, while maintaining a consistent and transparent framework.

VFF surcharge rates

Domestic and International VFF rates are published on our website and applied to freight charges in accordance with our standard terms and conditions.

Domestic VFF

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

International VFF

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

This is because international services are more significantly impacted by jet fuel (aviation fuel) costs, which do not always move in line with diesel pricing. Separate VFFs provide greater transparency across different parts of the network.

How the VFF is applied

VFF rates are applied to freight charges and are reflected on invoices and statements, providing visibility of total pricing.

Updated VFF rates are:

• Published weekly
• Applied after a minimum of one week’s notice

You can view the latest Domestic and International VFF rates on our website.

View the latest Domestic and International VFF rates 

How does the VFF impact my business or courier pricing?

The VFF ensures that fuel-related cost movements are reflected proportionately in courier pricing.

• Increases in fuel prices may result in higher VFF rates
• Decreases in fuel prices may result in lower VFF rates
• Changes are communicated in advance to support pricing adjustments

This allows customers to plan for and, where applicable, pass through fuel-related cost changes.