PBT Variable Fuel Charge

PBT VFC Update – 18th September 2019

We would like to make you aware of a potential change in the PBT variable fuel charge (VFC) as a result of significantly increased fuel pricing uncertainty, which has been triggered by the recent attacks in Saudi Arabia.

During periods of reasonable fuel price certainty our approach is to set the PBT VFC charge at the start of each month based on MBIE diesel price data from two months ago. For example, October VFC would normally be based on August MBIE data. This approach provides clients the benefit of extended advice of what the VFC charge is likely to be.

During periods of significant fuel price volatility our approach is to set the PBT VFC at the start of the month based on MBIE diesel price data from the prior month.

Given the current uncertainty, we expect to base the October VFC charge on more recent September MBIE data. We will confirm the October PBT VFC charge on 30th September, however we feel it is appropriate to highlight this issue with you now.

At this stage we do not know the impact these events will have on fuel prices or how long price volatility might last for – we will update you again on, or before, 30th September.

Procedure description

PBT operate a transparent variable fuel charge (VFC) as set out in the table below. The VFC PBT charge is applicable to the following month and is updated at the start of each month to reflect the reference diesel price. The reference diesel price is taken from the average diesel price for the past month as set out in the MBIE data available.

View the MBIE dataset here.

When the average diesel rate exceeds $1.35 per litre we apply a surcharge based on the following table. There is no variable fuel charge when the average diesel rate is below $1.35 however, we always add the current road user surcharge of 4.49 per cent to the invoice as road user charges do not change with diesel rates.

As a rule of thumb, each five cent increase above $1.35 is worth 1%.

Global VFC Table Effective 1 July 2019

Fuel prices at pumpCore VFC %RUC %Total
$1.35 - $1.399 1% 4.49% 5.49%
$1.40 - $1.449 2% 4.49% 6.49%
$1.45 - $1.499 3% 4.49% 7.49%
$1.50 - $1.549 4% 4.49% 8.49%
$1.55 - $1.599 5% 4.49% 9.49%
$1.60 - $1.649 6% 4.49% 10.49%
$1.65 - $1.699 7% 4.49% 11.49%
$1.70 - $1.749 8% 4.49% 12.49%
$1.75 - $1.799 9% 4.49% 13.49%
$1.80 - $1.849 10% 4.49% 14.49%
$1.85 - $1.899 11% 4.49% 15.49%

We print next month’s variable fuel charge on each statement.

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