Fuel Floater
The Fuel Floater is a flexible tool designed to ensure fair pricing for both parties. As fuel prices fluctuate, the rate adjusts accordingly—if fuel costs rise, the price increases, and if they fall, the price decreases—providing transparency and fairness in pricing.
Baseline Fuel Price (BFP)
Monthly development
The Basics of a Fuel Surcharge
- The fuel surcharge will only be applied to contracted road and rail transport loads.
- The fuel surcharge will be provided by Girteka Logistics on the first week of the month, at the latest, to calculate the prices for the current month. For example, the Current Fuel Price for January 2024 would be provided on January 7, 2024, at the latest, to be used throughout the month of January.
- The benchmark for the Current Fuel Price is the European Commission’s (EC) Weekly Oil Bulletin found here: https://ec.europa.eu/energy/observatory/reports/List-of-WOB.pdf
- The fuel surcharge is recalculated monthly.
- The fuel surcharge will only be applied if the deviation from the baseline fuel price (BFP) compared to the Current Fuel Price (CFP) is more than 4%.
Baseline Fuel Price (BFP) and Current Fuel Price (CFP) sources
- The BFP is based on the tender agreement.
- CFP is based on the EU27 average diesel price with taxes (last month’s average). The way to calculate the CFP is as follows:
- Open the EC’s Weekly Oil Bulletin;
- Find all of the month’s Weekly Oil Bulletins;
- Find the average diesel price in the EU27 in the second sheet of the bulletin.
For example:
- The average weekly price on January 11, 2021, was: 1196,24 EUR / 1000 l
- The average weekly price on January 18, 2021, was: 1210,63 EUR / 1000 l
- The average weekly price on January 25, 2021, was 1216,15 EUR / 1000 l
Meaning that CFP for February 2021 is calculated using this formula:
Fuel Surcharge Formula
An example of the fuel surcharge being used in a fictional scenario:
- The agreed BFP is 1,115 EUR/l.
- The contracted price is 1,000 EUR.
To recalculate the prices for February 2021, the CFP of January 2021 is being used:
- The average weekly price on January 11, 2021, was: 1196,24 EUR / 1000 l
- The average weekly price on January 18, 2021, was: 1210,63 EUR / 1000 l
- The average weekly price on January 25, 2021, was 1216,15 EUR / 1000 l
Meaning the CFP for February 2021 was:
Then, we compare the CFP to the BFP by using this formula:
Which in this case means that the difference between the CFP and the BFP is:
The new freight price is calculated using this formula:
In our case, this means:
HVO Baseline Fuel Price (BFP)
Monthly development
The Basics of a Fuel Surcharge
- The fuel surcharge will only be applied to contracted road and rail transport loads.
- The fuel surcharge will be provided by Girteka Logistics on the first week of the month, at the latest, to calculate the prices for the current month. For example, the Current Fuel Price for January 2024 would be provided on January 7, 2024, at the latest, to be used throughout the month of January.
- The benchmark for the Current Fuel Price is the European Commission’s (EC) Weekly Oil Bulletin found here: learn more.
- The fuel surcharge is recalculated monthly.
- The fuel surcharge will only be applied if the deviation from the baseline fuel price (BFP) compared to the Current Fuel Price (CFP) is more than 4%.
Baseline Fuel Price (BFP) and Current Fuel Price (CFP) sources
- The BFP is based on the tender agreement.
- CFP is based on the EU27 average diesel price with taxes (last month’s average). The way to calculate the CFP is as follows:
- Open the EC’s Weekly Oil Bulletin;
- Find all of the month’s Weekly Oil Bulletins;
- Find the average diesel price in the EU27 in the second sheet of the bulletin.
For example:
- The average weekly price on January 11, 2021, was: 1196,24 EUR / 1000 l
- The average weekly price on January 18, 2021, was: 1210,63 EUR / 1000 l
- The average weekly price on January 25, 2021, was 1216,15 EUR / 1000 l
Meaning that CFP for February 2021 is calculated using this formula:
Fuel Surcharge Formula
An example of the fuel surcharge being used in a fictional scenario:
- The agreed BFP is 1,115 EUR/l.
- The contracted price is 1,000 EUR.
To recalculate the prices for February 2021, the CFP of January 2021 is being used:
- The average weekly price on January 11, 2021, was: 1196,24 EUR / 1000 l
- The average weekly price on January 18, 2021, was: 1210,63 EUR / 1000 l
- The average weekly price on January 25, 2021, was 1216,15 EUR / 1000 l
Meaning the CFP for February 2021 was:
Then, we compare the CFP to the BFP by using this formula:
Which in this case means that the difference between the CFP and the BFP is:
The new freight price is calculated using this formula:
In our case, this means:
