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LINDSAY TRANSPORT – FUEL LEVY Over recent years World Oil Prices and consequently Australian diesel prices have increased at a rate far greater than other costs associated with the running of a transport operation. The cost of Singapore-based diesel fuel which determines our price reflects these changes. Transport companies are traditionally high turnover low margin businesses whereby fluctuations in major cost areas can have an immediate effect on their viability and profitability. With fuel costs contributing to about a quarter of our total transport costs it is imperative that Lindsay Transport seek to recover large upward movements in this cost. Lindsay Transport has developed a “Fuel Levy Formula” that provides a fair and transparent calculation for the recovery of these volatile cost movements. The formula is based on the percentage movement of fuel prices since the 2004 calendar year (when prices started to rise rapidly) 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. Each month the fuel levy will be adjusted up or down according to the calculation shown below and updated on this website. The change will automatically flow through to our pricing mechanism and apply from the first day of every month. In some circumstances the price volatility may require a more frequent adjustment. We thank you for your understanding in this matter and look forward to continuing to supply a first-class transport service.
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