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 at the date of the most recent Cost of Ownership review (September 2009). The next Cost of Ownership review will be conducted by the Ministry of Transportation and Infrastructure in October 2016.
- 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
- (+/-) $0.75 / hr for On-Road Equipment for each adjustment increment
- (+/-) $1.75 / hr for Off-Road Equipment for each adjustment increment
|TABLE 1 – Fuel Price Adjustment||On-Road
|Base Price – Oct 1 2009 net of Carbon Tax (4.04)
(MJ Ervin (BC) Average Diesel Price less Carbon Tax)
|October 2017 Average px (n=7) less CT||$1.18||$1.18|
|Change in Cents (Base Price - Current Price) exclusive of CO2 Taxes||$0.16||$0.16|
|Fixed Fuel Consumption (L / hour)||15 L/hour||35 L/hour|