Fuel Surcharge

With effect from 1st August 2011 some final A-Plant invoices raised after this date will be subject to a fuel surcharge of £1.90.

Why are we introducing the Fuel Surcharge?

As you will no doubt know, the rising cost of fuel has been an issue which has received media coverage on a daily basis in recent years and it is an issue which affects nearly all of us as we go about our routines.  Fuel is now at its highest price ever and the cost of diesel fuel has risen by 42% since January 2009.  This is an unprecedented increase and has impacted on many industries throughout the UK and overseas.  In fact, the UK has the second highest diesel price in Europe (fuel price data supplied by Experian Catalist in cooperation with Arval UK Ltd).

Despite mounting increases in diesel fuel prices, plus increases in associated transport costs we have absorbed these costs without passing these increases on to you.  However, with many of our customers requiring equipment to be delivered and collected from site and as an operator of more than 900 goods vehicles, this is a cost which we simply cannot continue to absorb.

How will the Fuel Surcharge Operate?

As opposed to applying a percentage surcharge, we will apply a fixed charge fuel surcharge of £1.90 to final invoices generated after 1st August 2011.  You will only pay the fuel surcharge once per hire contract, regardless of hire contract length, and you will only pay it when equipment is off-hired at the end of the hire contract.

For example, if you hire equipment for 2 months the invoice at the end of month 1 will not show the fuel surcharge, but the invoice you receive at the end of month 2 will. This charge will be visible as ‘Fuel Surcharge’ on your invoice.

What if you collect and return the equipment yourself?

95% of our customers require equipment to be delivered to and collected from site in order that they can complete their projects.  However, the Fuel Surcharge will only be applied in instances where equipment is delivered to or collected from site by A-Plant or one of our nominated hauliers. If you collect and return equipment on the same hire contract from/to an A-Plant depot the Fuel Surcharge will not be applied.

Does the Fuel Surcharge apply to fuel supplied in equipment?

No. The Fuel Surcharge only applies to equipment deliveries and collections. All arrangements for fuel supplied in equipment remain unchanged.

How have we calculated the Fuel Surcharge?

Although we are introducing a standard ‘fixed cost’ fuel surcharge regardless of the size of the contract or the amount of equipment on hire, our fuel surcharge is linked to the UK monthly average diesel price published on The AA website. We will be as transparent as possible with regard to this issue.  We will continue to monitor fluctuations in fuel prices, hence this surcharge may be increased, decreased or eliminated in the future depending on the trends of the price of fuel and other transport related costs.  Any reductions in fuel prices within certain bandings will be passed directly on to you and should fuel costs return to more acceptable levels, we will eliminate the fuel surcharge altogether.

The table below details exactly how the bandings will operate:

Fuel Price From:

Fuel Price To:

Fuel Surcharge:

-

£1.199

Fuel Surcharge eliminated

£1.200

£1.499

£1.900

£1.500

£1.649

£3.800

£1.650

£1.799

£5.700

£1.800

£1.800+

TBC

What are we doing to combat the effects of rising fuel costs?

We are consistently specifying the latest engine and emissions technology in our delivery vehicles. We have invested in excess of £6 million over the last two years on upgrading our vehicle fleet with body designs and engines with the highest levels of fuel efficiency and emissions compliance.  What’s more, we are planning to invest an additional £18 million in new vehicles over the next 12 months.

If you have any queries or you’d like to get in touch, please click here.