Tuesday, January 6th, 2009
Fuel Surcharge
Fuel Surcharge – 0.0% as of 15/12/08
GEFCO has always operated the fuel surcharge in arrears and subsequently, the implementation of historic increases was delayed. However, due to the continual economic climate, GEFCO is in the process of undertaking a major operational review, with the aim of increasing internal efficiencies and improving our costs management. As part of this process the senior management team has taken the opportunity to review the fuel mechanism in an attempt to reduce the burden upon our customers.
Subsequently, for the second consecutive month, GEFCO will reduce the fuel surcharge over and above the requirement as indicated by the fuel calculator.
GEFCO will, as of 15th December 2008, apply a fuel surcharge of 0.0%. This unprecedented change also means that a review of the base rate is required. Consequently a new base rate will be set, using the same JHA mechanism, in 2009.
The Tariff Calculator - Process as from 15/12/08
The base rate will be reviewed in January 2009 and applied to the same mechanism, from this time forward. Updated information will be presented, via the GEFCO UK website in January 2009.
Average Net Diesel Prices (Central)
JH Index: 71.93 (GEFCO UK Bunker Price £75.67) - 30th September 2006
| Date | GEFCO UK Bunker Price | JH Index | Variance to Base | Impact on Costs | Surcharge |
|---|
| 28th Jan 2008 |
£88.29 |
86.84 |
20.7% |
5.2% |
2.0% |
| 4th Feb 2008 |
£88.83 |
|
|
|
2.0% |
| 11th Feb 2008 |
£89.15 |
|
|
|
2.0% |
| 18th Feb 2008 |
£91.61 |
|
|
|
2.0% |
| 25th Feb 2008 |
£93.33 |
91.50 |
27.2% |
6.8% |
2.0% |
| 3rd Mar 2008 |
£93.43 |
|
|
|
2.0% |
| 10th Mar 2008 |
£95.92 |
|
|
|
2.0% |
| 17th Mar 2008 |
£97.78 |
|
|
|
2.0% |
| 24th Mar 2008 |
£95.94 |
|
|
|
2.0% |
| 31st Mar 2008 |
£95.82 |
94.34 |
31.2% |
7.8% |
2.0% |
| 7th Apr 2008 |
£96.19 |
|
|
|
4.0% |
| 14th Apr 2008 |
£99.41 |
|
|
|
4.0% |
| 21st Apr 2008 |
£100.16 |
|
|
|
4.0% |
| 28th Apr 2008 |
£101.64 |
99.75 |
38.7% |
9.7% |
4.0% |
| 6th May 2008 |
£101.53 |
|
|
|
4.0% |
| 12th May 2008 |
£104.19 |
|
|
|
4.0% |
| 19th May 2008 |
£107.92 |
|
|
|
4.0% |
| 26th May 2008 |
£109.28 |
107.33 |
49.2% |
12.3% |
4.0% |
| 2nd Jun 2008 |
£108.30 |
|
|
|
8.0% |
| 9th Jun 2008 |
£106.86 |
|
|
|
8.0% |
| 16th Jun 2008 |
£109.39 |
|
|
|
8.0% |
| 23rd Jun 2008 |
£108.15 |
|
|
|
8.0% |
| 30th Jun 2008 |
£107.98 |
106.46 |
48.0% |
12.0% |
9.3% |
| 7th Jul 2008 |
£109.60 |
|
|
|
9.3% |
| 14th Jul 2008 |
£109.06 |
|
|
|
9.3% |
| 21st Jul 2008 |
£107.94 |
|
|
|
9.3% |
| 28th Jul 2008 |
£104.92 |
103.68 |
44.0% |
11.0% |
8.0% |
| 4th Aug 2008 |
£103.17 |
|
|
|
8.0% |
| 11th Aug 2008 |
£100.49 |
|
|
|
8.0% |
| 18th Aug 2008 |
£99.78 |
|
|
|
8.0% |
| 25th Aug 2008 |
£101.00 |
99.38 |
44.0% |
11.0% |
8.0% |
| 1st Sep 2008 |
£102.42 |
|
|
|
8.0% |
| 8th Sep 2008 |
£101.24 |
|
|
|
8.0% |
| 15th Sep 2008 |
£100.19 |
|
|
|
8.0% |
| 22nd Sep 2008 |
£97.11 |
|
|
|
8.0% |
| 29th Sep 2008 |
£99.35 |
97.86 |
36.0% |
9.0% |
8.0% |
| 6th Oct 2008 |
£98.19 |
|
|
|
8.0% |
| 13th Oct 2008 |
£93.34 |
|
|
|
8.0% |
| 20th Oct 2008 |
£89.93 |
|
|
|
8.0% |
| 27th Oct 2008 |
£89.50 |
|
|
|
8.0% |
| 3rd Nov 2008 |
£89.09 |
|
|
|
8.0% |
| 10th Nov 2008 |
£89.29 |
|
|
|
5.5% |
| 17th Nov 2008 |
£88.32 |
|
|
|
5.5% |
| 24th Nov 2008 |
£86.24 |
|
|
|
5.5% |
| 1st Dec 2008 |
£87.04 |
84.80 |
18.0% |
4.0% |
5.5% |
| 8th Dec 2008 |
£84.72 |
|
|
|
5.5% |
| 15th Dec 2008 |
£82.80 |
|
|
|
0.0% |
Fuel Pricing - Our Commitment to You:
Diesel Price Decline
The calculator has been designed to cover additional costs GEFCO encountered when fuel increased and to also ensure that any reduction in our cost base, through falling diesel prices, is passed on to our customers.
As you are aware, we have linked the diesel index to the JHA Index, which reports diesel figures in arrears. Therefore, whilst you will not yet have received any reduction in the fuel surcharge, should the current trend continue it is likely to trigger a reduction in GEFCO’s current surcharge, which will be applied at the beginning of the coming month.
We ask you to apply caution when assessing the cost of fuel, as there are few reasons to suggest that the oil price fall is the start of a trend. First of all, there has been no big rise in stockpiles of crude oil or petrol; in actual fact the contrary is true. Secondly, there has been little change in the shape of the future curve, for deals to buy oil years from now. Therefore the high prices suggest the market has little confidence that new supply will bring about a collapse in prices any time soon.
Fuel Surcharge Explained
In order to avoid uncertainty in the current climate, GEFCO consider that the most appropriate and effective mechanism is to use a a predetermined matrix based on the John Hall Associates index, published on a monthly basis and related to our fuel bunker costs. Thus we are able to provide our customers with certainty about how any surcharge or rebate would be applied as prices fluctuate and wherever possible, minimise any impact of escalating fuel rates. We believe that this will provide a greater degree of clarity and transparency, effectively assist in budgeting and pricing and by making small, regular adjustments to the fuel surcharge as appropriate we will avoid the necessity for unsustainable periodic increases.
The percentage increase or rebate applied to invoices at the start of each month will be determined by taking the average of the preceding 4 weeks fuel price and using the percentage determined by the calculator above. The GEFCO BP bunker price will be published on our website each week.