VTA FUEL LEVY PACKAGE EFFECTIVE 1ST DECEMBER 2018
The average cost of Diesel for the month of October 2018 has had a startling increase. The average cost of Diesel for the month was $1.62 per litre. This level of cost has not been seen since the Global Financial crisis in 2008.
We have been through a fairly stable period of Diesel Fuel pricing over the past eighteen months that has provided transport companies with a chance to better manage cash flow and planning, however, the recent increases have shown that Diesel Fuel prices will continue to be volatile and difficult to predict.
It is imperative that a Fuel Pricing mechanism be embedded in every transport company’s rate structures. Depending upon the type of vehicle and distance travelled, the indexed value of diesel fuel in any transport company can be between 15 – 35 %. Absorbing such a rapid cost increase will see definitive margin erosion and pressure on cash flows.
The VTA provides its monthly data to assist transport companies in maintaining an informed and constant position on the cost of diesel fuel. We are available to provide advice and assistance to any member on the best methods and processes of implementing a fuel price mechanism.
The VTA has recently negotiated an offer from VIVA Energy for all VTA members that will provide savings and consistency for all users of bulk fuels. Please give the VTA a call to discuss this generous offer.
The Fuel levy Package is available on the VTA website and is available within the first week of every month.