EPH – VIC Fuel Levy Surcharge

Diesel rates taken from the Australian Institute of Petroleum website:

https://aip.com.au/pricing/terminal-gate-prices/MelbourneDIESEL

To address the impact of increased diesel costs, EPH is introducing a temporary Fuel Levy Surcharge on selected jobs from Monday 28 March 2022.

HOW DOES THE FUEL LEVY SURCHARGE (FLS) WORK?

1. Each Monday, EPH will publish on this website the Average Terminal Gate Price (ATGP) for Diesel in Melbourne, as per the data from the Australian Institute of Petroleum (AIP),
2. This ATGP will determine the EPH FLS Bracket (from the table below) which will determine the Fuel Levy Surcharge amount that applies to any works performed during that week,
3. The FLS charges commence on the Monday of publication to the following Sunday,

PLEASE NOTE: It is likely that projects which run from one week to the next will encounter different FLS Brackets throughout their duration. EPH will leave historical data on this website for Client and Subcontractor reconciliation.

ADJUSTMENT IN BASELINE FUEL RATE:

As of Thursday 18^th August 2022, EPH updated our standard hire rates for earthmoving plant and tip trucks across Victoria.

The update in our Standard Hire Rates reflects (in part) the increase in operating costs attributable to fuel prices which has been experienced by our Subcontractors over the preceding months.

As such, the updated Standard Hire Rates incorporate a higher baseline fuel price than was previously published on Monday 28^th March 2022, which reflects the fuel price which can be reasonably expected in the current market.

On Thursday 18^th August 2022, the baseline price for the Fuel Levy Surcharge increases from the original $1.60 per L, to $1.85 per L.

HOW ARE THE FLS BRACKET VALUES ARRIVES AT?

These rates are only aimed at addressing the variance between a baseline price ($1.85 per L) and the current fuel price.

Existing hire rates are considered sufficient to absorb pricing fluctuations up until the baseline price.

The Fuel Levy Surcharge rates are a designed to be general in nature. They are based upon typical conditions which could be reasonably assumed to be encountered. They are not specific to a make of equipment, skill level of operator or type of work being undertaken.

For trucks, EPH have utilised published data from the Australian Trucking Association (ATA) regarding the average diesel usage per 100km by configuration.

For machines, EPH have utilised published data from the CAT Performance Handbook, regarding estimated fuel consumption per hour.

WORKED EXAMPLE: 

1. On Monday 1 August, the updated ATGP published by AIP was $1.877 per L,
2. This was assessed as the average diesel gate rate from the previous week (Monday 25 – Sunday 31 July),
3. This falls into EPH Updated FLS Bracket 1 (valid from August 18th, 2022) as it is greater than $1.85, yet less than $1.95, within the EPH Fuel Levy Surcharge Brackets table,
4. The EPH FLS Bracket 1 rates will apply to all works performed between the dates of Monday 1 to Sunday 7 August (i.e.+$1.10 per hour for a Tandem, +$1.92 per hour for a Truck & 3-Axle Trailer, +$2.47 per hour for a 12-20T Excavator)
5. Then again on Monday 8 August, the updated ATGP published by AIP was $1.863 per L,
6. Repeat the same structure in Steps 2 – 4 while reflecting updated dates.

Questions? Contact your EPH Representative, or the EPH office on 1300 037 437 and we’ll be happy to assist.

Subcontractors Please Note: Fuel Levy Rates shown are inclusive of Eastern Plant Hire’s standard agency administration fees.