VARIABLE FUEL
The current fuel factor % for domestic services is
| Effective Date | Variable Fuel Factor (VFF) | Road User Chargers (RUC) | Combined VFF & RUC |
|---|---|---|---|
| 27 April 2026 | 15.6% | 2.7% | 18.3% |
| 20 April 2026 | 17.7% | 2.7% | 20.4% |
| 13 April 2026 | 17.2% | 2.7% | 19.9% |
| 06 April 2026 | 15.4% | 2.7% | 18.1% |
| 30 March 2026 | 13.8% | 2.7% | 16.5% |
| 01 March 2026 | 7.9% | 2.7% | 10.6% |
| 01 February 2026 | 8.2% | 2.7% | 10.9% |
| 01 January 2026 | 8.2% | 2.7% | 10.9% |
| 01 December 2025 | 7.9% | 2.7% | 10.6% |
| 01 November 2025 | 7.9% | 2.7% | 10.6% |
| 01 October 2025 | 7.8% | 2.7% | 10.5% |
| 01 September 2025 | 10.4% | 0.0% | 10.4% |
| 01 August 2025 | 10% | 0.0% | 10% |
| 01 July 2025 | 10.1% | 0.0% | 10.1% |
| 01 June 2025 | 10.4% | 0.0% | 10.4% |
| 01 May 2025 | 10.5% | 0.0% | 10.5% |
| 01 April 2025 | 10.5% | 0.0% | 10.5% |
| 01 March 2025 | 12.3% | 0.0% | 12.3% |
| 01 February 2025 | 11.4% | 0.0% | 11.4% |
| 01 January 2025 | 10.9% | 0.0% | 10.9% |
| 01 December 2024 | 10.1% | 0.0% | 10.1% |
| 01 November 2024 | 9.9% | 0.0% | 9.9% |
| 01 October 2024 | 11.3% | 0.0% | 11.3% |
| 01 September 2024 | 12.1% | 0.0% | 12.1% |
| 01 August 2024 | 11.6% | 0.0% | 11.6% |
| 01 July 2024 | 12.5% | 0.0% | 12.5% |
| 01 June 2024 | 13.4% | 0.0% | 13.4% |
| 01 May 2024 | 13.3% | 0.0% | 13.3% |
| 01 April 2024 | 13.0% | 0.0% | 13.0% |
| 01 March 2024 | 12.1% | 0.0% | 12.1% |
| 01 February 2024 | 12.3% | 0.0% | 12.3% |
| 01 January 2024 | 13.9% | 0.0% | 13.9% |
From 1 October 2025, we’ve split out the Road User Charges (RUC) component from our total Variable Fuel Factor to increase transparency and align with other Freightways brands. The intention is to only adjust this surcharge (up or down) if the government alters RUC rates.
VFF Calculation Update
From Monday, 30 March 2026, and in response to ongoing global conflict and fluctuations in fuel prices, the VFF will be calculated based on the average diesel price over the preceding two weeks. This methodology will remain in effect until further notice.
Previously, we have relied on fuel price monitoring data published by the Ministry of Business, Innovation and Employment (MBIE) as our index. However, MBIE has temporarily suspended publication due to volatility in the global market. As a result, we will use pricing data supplied by BP, our principal fuel supplier, as an interim index.
This approach will be reviewed on a weekly basis, with adjustments made as necessary to ensure continued accuracy and transparency.
Overview
Fuel costs are understandably one of the most significant and variable cost components in the transport industry. The Variable Fuel Factor (VFF) was introduced for the purpose of providing for the increased costs in fuel, primarily diesel, to fairly compensate our couriers and line haul operators and to ensure a high level of transparency in our pricing model for our customers.
How the VFF works
- The VFF is based on the average fuel price over a two-week period
- Fuel pricing data is sourced from independently sourced data available through our primary supply arrangements
- The applicable VFF is determined using the pricing table below
- The VFF is reviewed and published weekly
- Updates are provided with at least one week’s notice prior to taking effect
By using this mechanism, we can:
- Provide transparency for customers to see how it is calculated
- Take into account any shifts in the price of fuel that impact significantly on the price of moving courier items
- Pass on any reductions, should the price of fuel decrease
- Give customers advanced notice of what the VFF will be a week in advance
frequently asked questions (FAQ)
How often is the VFF updated?
A. The VFF is reviewed and may be updated weekly.
How do I find out the current rate?
A. Our website will be updated each week with the VFF surcharge for the following week. You can find the current rate here at the top of the Variable Fuel Factor page.
Why the VFF is reviewed regularly?
A. Fuel prices may experience periods of volatility. Regular review of the VFF supports a more timely reflection of fuel cost movements, while maintaining a structured and transparent approach.
What is the Fuel Price source?
A. Due to the suspension of MBIE fuel price data in March 2026, Kiwi Express uses independently sourced fuel pricing data available through its primary supply arrangements as the reference index.
What fuel prices are used to calculate the VFF?
A. The VFF is based on the average fuel price over a two-week period, using independently sourced data.
When do VFF changes take effect?
A. We calculate the VFF percentage for any given week using the average diesel retail prices over a two week period (updates are provided with at least one week’s notice prior to taking effect). For every 2c movement, our rates will move by +/- 0.1% (Click here to see the “Variable Fuel Factor Table”).
Does the VFF apply to all freight?
A. The VFF applies to most services across our network in accordance with our standard terms and conditions.
How will the VFF appear on my invoice?
A. We will include the VFF in the price of the charges listed on your invoice/statement. This allows you complete visibility as to the total price of each item.
How do I manage this increase within my business?
A. There is a one week lag to try and provide a buffer in regard to the latest increases, and each week we will post the VFF surcharge percentage for the next week on our website.
How does the Emissions Trading Scheme impact the VFF?
A. The New Zealand Emissions Trading Scheme (ETS) is part of the Government’s primary response to global climate change. Effective 1st July 2010 an additional tax has been applied to fuel, and passed on through the pump price.
For more information on the ETS visit www.mfe.govt.nz/ets.
Variable Fuel Factor (VFF)
| Diesel Price | VFF % |
|---|---|
| $1.46 - $1.47 | 5.7% |
| $1.48 - $1.49 | 5.8% |
| $1.50 - $1.51 | 5.9% |
| $1.52 - $1.53 | 6.0% |
| $1.54 - $1.55 | 6.1% |
| $1.56 - $1.57 | 6.2% |
| $1.58 - $1.59 | 6.3% |
| $1.60 - $1.61 | 6.4% |
| $1.62 - $1.63 | 6.5% |
| $1.64 - $1.65 | 6.6% |
| $1.66 - $1.67 | 6.7% |
