Fuel Price Adjustment
What is the Fuel Price Adjustment?
Hourly rates paid for hired equipment are adjusted monthly to ensure fairness and to reflect the potential volatility of fuel pricing in today’s global economy. The adjustment is not intended to compensate for provincial policy related to the Carbon Tax which has specific carbon reduction objectives.
The fuel adjustment will be posted within 5 days of the beginning of each month. The calculation is based on the difference in the average price of fuel in the previous month tracked by M J Ervine net of any CO2 taxes and the base price established in September 2009. A ‘Cost of Ownership Review’ was completed in 2016 and the results are being analyzed for application to the current Hired Equipment Program & Blue Book Rates.
- On-Road Equipment (highway-licensed vehicles) are calculated at an average of 15 L / hour (e.g. gravel trucks)
- Off-Road Equipment (not licensable for highway use, such as excavators) are calculated at an average of 35 L / hour
|TABLE 1 – Fuel Price Adjustment||On-Road
|Current Price January 1, 2020 Average
MJ Ervin (BC) average diesel price less Carbon Tax
Oct 1 2009 net of Carbon Tax (4.04)
|BC Carbon Tax [April 1, 2019 = $0.10]||$0.10||$0.10|
|Change in Cents [Current Price - Base Price - Carbon Tax]||$0.30||$0.30|
|Fixed Fuel Consumption (L / hour)||15 L/hour||35 L/hour|