Explanation of fuel surcharge calculation.
Verbose description of fuel Levy calculation
Base Net fuel price is $0.75 from When FAA started to apply a fuel levy
Mathematical Description of Fuel Levy Calculation
Fuel levy =((((CF/1.1)-CR)-BF)/BF)*0.32
Example for June 2012
Fuel levy =((((1.385/1.1)-0.15043)-0.70)/0.70)*0.32
- Less gst
- Less rebate
- That gets a net price of the current fuel
- Get the difference in net price
- Divide the difference by the Base net price to get percentage change from base.
- Divide the percentage change by fuel factor (32%) to get the fuel levy.
- BF= 0.75 (Base fuel when FAAstarted applying fuel levy. This is a net value, ex rebate and GST)
- CF = current fuel (National average diesel price as published by AIP, for each week ending of the previous month divided by number of weeks)
- CR = diesel fuel current rebate