Fuel Adjustment Factor (FAF)
Global oil markets have experienced significant volatility, including supply disruption and uncertainty linked to the Middle East conflict. This has contributed to increased diesel pricing pressure in New Zealand. As fuel is one of our largest operating costs, Dash Transport is introducing a Fuel Adjustment Factor (FAF) from 1 April 2026.
We have absorbed fuel increases where possible, however the current level of fuel pricing is no longer sustainable within our existing rates. The FAF is being introduced as a transparent cost-recovery mechanism to help maintain reliable service while ensuring fuel cost movements are treated fairly.
The FAF is calculated monthly using the published MBIE diesel board price on a one-month lag (ie May FAF will be based on April average board price). When diesel is at or below our base price, no FAF applies. When it's above, the FAF will be applied as a separate line on your invoice.
Source: MBIE weekly fuel price monitoring
Increment: FAF moves 0.1% for every $0.01 change in the average monthly board price for the month prior.
Base Price: $1.93 The Average Board price for 2025
Formula: (Reference month board price - base price) *0.1% = Current FAF
Example: (325-193) × 100 × 0.10% = 13.2%
The average board price for May was $3.25 so the FAF for June is 13.2%