Variable Prices

Temporary Continuity Cost surcharge from 1 April 2022

NZ Post introduced a temporary surcharge from 1 April 2022 to cover scenarios where additional costs over and above ‘Business as Usual’ are required. The ‘Temporary Continuity Cost’ surcharge (TCC surcharge) covers situations where incidents outside of NZ Post’s control require significant investment from us in order to manage the flow of our network, and continue to operate our network through the period of the incident or event. The TCC applies to all domestic Courier products, excluding Express and Transport.

This will appear on your invoice in conjunction with our existing Fuel (VFR) and Road User (RUC) surcharges. The TCC surcharge rate is reviewed monthly, based on costs incurred relating to the current operating environment. 

If applicable, the TCC rate for the following month will be published mid-month on this page. 

The TCC rate for July 2022

  • We continue to see impacts on our resourcing as a result of the Omicron outbreak, however our expectation is that these will reduce over time.
  • The TCC rate for July 2022 will be 0.0%.
  • If these impacts are sustained for a longer period or time, or we experience material and unexpected events that impact our cost base, a TCC rate may apply.

In managing the number of items moving through our network late last year, we introduced measures to work through volume surges as quickly as possible – scaling our capacity in Auckland 70% and nationwide deliveries to over 2.4m items per week.

From establishing temporary processing sites, to increasing our resource, redeploying our Express and Mail networks, operating seven days a week and procuring new equipment and containers, our response was a costly one. We were also operating under COVID restrictions, requiring shift separation, physical distancing, use of PPE and other controls, which reduce capacity and increase costs.

Last year’s increased costs were not offset by revenue from additional parcel volumes, and to date, we have not passed these costs on to our customers.

Across the industry, ‘continuity surcharges’ are common practice to allow for incremental costs relating to unplanned events – i.e. natural disasters, a pandemic – events outside of the control of the service provider.

Due to the sustained nature of the COVID pandemic it is no longer possible for us to continue to bear these additional costs. From 1 April, NZ Post will be introducing a new temporary surcharge to cover scenarios where additional costs over and above ‘Business as Usual’ are required in the short term to keep things moving sustainably and safely.

The TCC rate will be reviewed monthly, in line with the additional costs required to operate our services. Each month, similar to our Variable Fuel Rate (VFR) and Road User Charges (RUC), the TCC rate for the following month will be published on our website. These can be viewed at nzpost.co.nz/surcharges. For the following month, we will aim to have the surcharge published and/or announced around the middle of the month.

The TCC surcharge will be reviewed monthly and will remain in place as long as additional costs are incurred relating to events beyond our control.

Variable Rates

2022

Month

Variable Fuel Rate (VFR)

Road User Charge (RUC) Temporary Continuity Cost (TCC) Total Variable Rate
July 2022 5.90% 0.00% 0.00% 5.90%
June 2022 4.30% 0.00% 2.50% 6.80%
May 2022 4.30% 0.00% 2.50% 6.80%
April 2022 3.00% 0.90% 2.50% 6.40%
March 2022 2.20% 0.90% 0.00% 3.10%
February 2022 2.10% 0.90% 0.00% 3.00%
January 2022 2.20% 0.90% 0.00% 3.10%

2020 and 2021

Month

Variable Fuel Rate (VFR)

Road User Charge (RUC) Total Variable Rate
December 2021 1.80% 0.90% 2.70%
November 2021 1.10% 0.90% 2.00%
October 2021 1.20% 0.90% 2.10%
September 2021 1.10% 0.90% 2.00%
August 2021 1.10% 0.90% 2.00%
July 2021 0.80% 0.90% 1.70%
June 2021 0.50% 0.90% 1.40%
May 2021 0.40% 0.90% 1.30%
April 2021 0.10% 0.90% 1.00%
March 2021 0.00% 0.90% 0.90%
February 2021 0.00% 0.90% 0.90%
January 2021 0.00% 0.90% 0.90%
December 2020 0.00% 0.90% 0.90%
November 2020 0.00% 0.90% 0.90%
October 2020 0.00% 0.90% 0.90%
September 2020 0.10% 0.90% 1.00%
August 2020 0.20% 0.90% 1.10%
July 2020 0.10% 0.90% 1.00%
June 2020 0.00% 0.60% 0.60%
May 2020 0.50% 0.60% 1.10%
April 2020 1.50% 0.60% 2.10%
March 2020 1.60% 0.60% 2.20%
Month

Variable Fuel Rate (VFR) 

Road User Charge (RUC) Total Variable Rate
July 2022 29.03% 0.00% 29.03%
June 2022 21.83% 0.00% 21.83%
May 2022 21.83% 0.00% 21.83%
April 2022 16.20% 0.90% 17.10%
March 2022 12.83% 0.90% 13.73%
February 2022 12.15% 0.90% 13.05%
January 2022 12.83% 0.90% 13.73%
December 2021 10.58% 0.90% 11.48%
November 2021 7.88% 0.90% 8.78%
October 2021 8.10% 0.90% 9.00%
September 2021 7.65% 0.90% 8.55%
August 2021 7.65% 0.90% 8.55%
July 2021 6.75% 0.90% 7.65%
June 2021 4.73% 0.90% 5.63%
May 2021 4.28% 0.90% 5.18%
April 2021 3.38% 0.90% 4.28%
March 2021 2.70% 0.90% 3.60%
February 2021 0.90% 0.90% 1.80%
January 2021 0.45% 0.90% 1.35%
December 2020 1.13% 0.90% 2.03%
November 2020 2.03% 0.90% 2.93%
October 2020 2.25% 0.90% 3.15%
September 2020 2.93% 0.90% 3.83%
August 2020 3.60% 0.90% 4.50%
July 2020 2.93% 0.90% 3.83%
June 2020 2.48% 0.60% 3.08%
May 2020 4.73% 0.60% 5.33%
April 2020 9.23% 0.60% 9.83%
March 2020 9.68% 0.60% 10.28%
February 2020 9.23% 0.60% 9.83%
January 2020 9.23% 0.60% 9.83%
December 2019 9.00% 0.60% 9.60%
November 2019 8.78% 0.60% 9.38%
October 2019 7.88% 0.60% 8.48%
September 2019 7.88% 0.60% 8.48%
August 2019 9.00% 0.60% 9.60%
July 2019 9.90% 0.60% 10.50%
June 2019 11.06% 0.30% 11.36%
May 2019 9.18% 0.30% 9.48%
April 2019 7.60% 0.30% 7.90%
March 2019 6.77% 0.30% 7.07%
February 2019 7.22% 0.30% 7.55%
January 2019 10.15% 0.30% 10.46%
December 2018 14.22% 0.30% 14.52%
November 2018 13.28% 0% 13.28%
October 2018 11.48% 0% 11.48%

Pricing

The total price you pay for a product or service is made up of two components: 

  • Base Price; and
  • Variable Price encompassing VFR, RUC and TCC (if applicable).

In order to calculate the total price you pay, we add these two components together, round the total to the nearest cent, and then add GST. 

Our Base Price component is the price for our products and services set out in our contract with you. 

Our Variable Price component is calculated as a percentage of the applicable Base Price. The percentage which we apply to the applicable Base Price is comprised of the Variable Fuel Rate (VFR), Road User Charge surcharge (RUC) and Temporary Continuity Cost (TCC) if applicable. The VFR changes from month to month because it is linked to the changing cost of diesel. We use the VFR that applies on the date you order your product or service. The RUC surcharge will only change in line with changes to Road User Charges. The TCC surcharge will change from month to month, based on costs incurred relating to events beyond our control. 

Calculating the Variable Price 

You can calculate the total price you pay according to the following formula: 

Base Price + (Base Price x (VFR % + RUC % + TCC%)) = Total Price (excl. GST).

Example ofVariable Price calculation

If the base price of your product or service was $5.00 and the VFR applying for the month was 1.40%, RUC 0.90%, and TCC (if applicable) 2.5%, then the total price (excl. GST) you pay would be $5.24 calculated as follows: 

Total price (excl. GST) = 5.00 + (5.00 x (1.40%+0.90%+2.5%)) = $5.24 

VFR table and calculation

The VFR alters from month to month according to the average monthly diesel price as shown in the table below. No VFR will apply in the relevant month if the average diesel price, including taxes is below $1.05 cents per litre in that month.

Index Linked

The VFR is linked to the ‘Diesel main port price excl taxes’ as published in the Weekly Oil Price Monitoring tables, by the Ministry of Business, Innovation & Employment (“Index”). The Index is published on the Ministry’s website on the Oil Price Monitoring page.

The prices shown in the Index exclude diesel taxes, duties and levies. For the purposes of calculating the VFR we add these diesel taxes, duties and levies to the average weekly diesel prices in the Index. To find out the current amount of these diesel taxes see the Energy Prices data table.

Note: 2.6 cents per litre has been added to the Diesel Taxes, Duties and Levies factor to account for the Auckland Regional Fuel Tax

Two Month Lag

The VFR for a given month is calculated based on the Index from two months earlier. For example, to calculate the December VFR, we use the Index price from October.

Baseline Diesel Price - Courier & Express

From the 1st of July 2015, the VFR has used a Baseline Diesel (Index) Price of $1.05. For every $0.02 movement above $1.05 in the Diesel main port price including taxes for a given month, VFR will increase by 0.1% as per the table below.

No VFR will apply in the relevant month if the average diesel price, including taxes is below $1.05 cents per litre in that month.

Baseline Diesel Price - Transport

We have used a baseline average diesel price of 92.25 cents per litre.

No VFR will apply in the relevant month (see above) if the average diesel price including taxes, duties and levies is less than 92.25 cents per litre in that month.

Average monthly Diesel Main Port Price (incl diesel taxes, excl GST) greater than:

Average monthly Diesel Main Port Price (incl diesel taxes, excl GST) less than or equal to:

VFR

1.04

1.05

0.00%

1.05

1.06

0.00%

1.06

 1.07 0.10%

1.07

 1.08 0.10%

1.08

1.09

0.20%

1.09

1.10

0.20%

1.10

1.11

0.30%

1.11

1.12

0.30%

1.12

1.13

0.40%

1.13

1.14

0.40%

1.14

1.15

0.50%

1.15

1.16

0.50%

1.16

1.17

0.60%

1.17

1.18

0.60%

1.18

1.19

0.70%

1.19 1.20

0.70%

1.20

1.21

0.80%

1.21

1.22

0.80%

1.22

1.23

0.90%

1.23

1.24

0.90%

1.24

1.25 1.00%

1.25

1.26

1.00%

1.26

1.27

1.10%

1.27

1.28

1.10%

1.28

1.29

1.20%

1.29 1.30 1.20%

...

...

 

1.42

1.43

1.90%

1.43

1.44

1.90%

The VFR will be calculated in the same manner as set out in the table above where the average diesel price (incl diesel taxes, excl GST) is more than $1.41 a litre.

Road User Charges

The Government has recently announced temporary changes to Road User Charges (RUC), which were made effective on 21 April 2022.
See details on the temporary reduction scheme here.

These changes vary depending on vehicle configuration, however, they represent a significant change across our road operations.

From 1 May 2022, the Road User Charge (RUC) surcharge will decrease from 0.90% to 0.00% to reflect the temporary reduction in RUC costs within our transport and courier fleets.

Our surcharges are managed and reviewed on a monthly basis, subsequently there is a delay of 10 days between the implementation of Government Temporary reduction measures - 21 April, and the ability of NZ Post to pass this reduction on to our customers - 1 May. To reflect the full period of the Government reduction of Road User Charges we will extend the 0.00% surcharge by 10 days. The RUC surcharge will return to 0.90% on 1 August 2022.

Historical VFRs

Month

Variable Fuel Rate

February 2020 1.50%
January 2020 1.40%
December 2019 1.40%
November 2019 1.30%
October 2019 1.20%
September 2019 1.20%
August 2019 1.40%
July 2019 1.60%
June 2019 1.90%
May 2019 1.50%
April 2019 1.10%
March 2019 0.90%
February 2019 1.00%
January 2019 1.70%
December 2018     2.50%
November 2018     2.40%
October 2018 1.90%
June 2018 0.90%
May 2018 0.70%
April 2018 0.80%
March 2018 0.90%
February 2018 0.00%
January 2018 0.00%
December 2017 0.00%
November 2017 0.00%
October 2017 0.00%
September 2017 - 0.6%
August 2017 0.00%
July 2017 0.00%
June 2017 0.00%
May 2017 0.00%
April 2017 0.00%
March 2017 0.00%
February 2017 0.00%
January 2017 0.00%
December 2016 0.00%
November 2016 - 0.30%
October 2016 - 0.60%
September 2016 - 0.60%
August 2016 0.00%
July 2016 - 0.30%
June 2016 - 1.10%
May 2016 - 1.20%
April 2016 - 2.10%
March 2016 - 2.00%
February 2016 - 0.80%
January 2016 - 0.10%
December 2015 0.00%
November 2015 0.00%
October 2015 0.00%
September 2015 0.00%
August 2015 0.00%
July 2015 0.00%
June 2015 3.40%
May 2015 3.50%
April 2015 3.10%
March 2015 2.70%
February 2015 4.20%
January 2015 5.20%
September 2018 9.90%
August 2018 9.68%
July 2018 9.23%
June 2018 6.98%
May 2018 5.85%
April 2018 6.53%
March 2018 6.75%
February 2018 6.98%
January 2018 6.75%
December 2017 4.95%
November 2017 4.50%