Jatt Logistics Fuel Levy
Transport companies are traditionally high turnover low margin businesses whereby fluctuations in major cost areas can have an immediate effect on their viability. With fuel costs contributing to almost a third of our total transport costs.
JATT Logistics uses an industry standard “Fuel Levy Formula” that provides a fair and transparent calculation for the recovery of these volatile cost movements which is aligned with industry standards. The formula is based on the percentage movement of the fuel base rate multiplied by the percentage of fuel as a component of our total expenses. This means that we are only seeking to recover the actual extra cost of fuel to our business and not attempting to improve profit margins via a fuel levy.
Fuel Levy Rates & Calculation
Fuel Levy = ( ( ( ( CFP / 1.1 ) – FTC ) – BF ) / BF ) * FF
- BF = Base Price of Fuel
- CFP = Current Fuel Price based on previous Month’s average fuel price
- FTC = ATO Fuel Tax Credit
- FF = Fuel factor in Expenses (JATT Logistics uses 33% for Linehaul and 26% for Local)
| Month | Local Fuel Levy | Linehaul Fuel Levy |
|---|---|---|
| July 2024 | 19.68% | 24.98% |
| June 2024 | 21.37% | 27.12% |
| May 2024 | 22.89% | 29.05% |
| Apr 2024 | 23.11% | 29.33% |
| Mar 2024 | 22.75% | 28.88% |
| Feb 2024 | 19.65% | 24.94% |
| Jan 2024 | 21.21% | 26.92% |
| Dec 2023 | 26.23% | 33.29% |
| Nov 2023 | 29.45% | 37.39% |