Fuel surcharge
From 4 July 2011, a fuel surcharge will apply to the following products*:
- Parcel Post
- Express Post
- International letters
- International parcels
Fuel surcharges are commonly used in logistics, transport and other industries to manage fluctuations and volatility in fuel prices and, therefore, costs.
The current fuel surcharge is included in the published price of relevant products and has resulted in a 1.0% increase in those prices. Historical movements in the fuel surcharge will be provided as available.
How the fuel surcharge is calculated
The price of fuel will be monitored periodically, with the fuel surcharge being adjusted up or down accordingly. Changes in the fuel surcharge will be reflected by an increase or decrease in the published price of the above products.
The fuel surcharge uses the Singapore Gasoil price as its reference price. Australia is part of the Asia-Pacific fuel market, where Singapore is a major regional refining / distribution centre. A current market benchmark price for fuel is the Singapore Gasoil price as provided by Platts (McGraw-Hill Inc, an independent company) and represents the end-of-day assessment for the price of Gasoil.
Frequency of fuel surcharge adjustments
We will not make any adjustments to the fuel surcharge during the initial 3-month period following its introduction. During this time we will:
- monitor the introduction of the surcharge
- review changes in the cost of fuel
- ensure that any surcharge adjustments would reflect market changes.
We will communicate more details regarding the frequency of fuel price reviews following the initial 3-month review period.
* The fuel surcharge is applied against the base product rates and additional weight charges. Optional charges such as signature-on-delivery, COD, Extra Cover and delivery confirmation are excluded.