Vic Mix Concrete Pty Ltd t/a VIC MIX
The Fuel Levy was introduced in late 2021 to help manage the impact of ongoing volatility in global oil prices on local fuel costs. Its primary purpose is to provide greater price stability for customers by avoiding frequent and broad increases to base concrete prices when fuel costs fluctuate.
Rather than embedding these movements into general product pricing, the Fuel Levy allows Vic Mix to apply a targeted adjustment that reflects changes in fuel costs when they occur. This approach also helps protect our cartage providers—approximately 80% of whom are independently operated—from month-to-month fuel price volatility, supporting the sustainability of the delivery fleet our customers rely on.
The levy is calculated as an average per-m³ rate and is divided amongst our Vic Mix fleet of Tankers, Tipper, Agitators and other mobile plant to offset the nominal change in operating costs resulting from movements in fuel prices from one month to the next. The model is not designed to generate profit for Vic Mix. As with any simplified pricing mechanism that translates complex cost drivers into a single rate, minor variances may occur in individual months due to assumptions, approximations, and rounding.
While the detailed mechanics of the model are commercially sensitive, it is applied consistently, reviewed monthly and based on movements in publicly available fuel pricing. We recognise that separate fuel charges can be frustrating, and our intent is to apply the levy only as a fair and practical alternative to larger, less targeted price increases.
Customers are encouraged to consider the Fuel Levy as part of the overall cost of doing business with Vic Mix and to compare our total pricing and service offering against alternative suppliers. Vic Mix remains committed to delivering competitive pricing, dependable supply, and a pricing structure that fairly reflects underlying cost movements.
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IMPORTANT INFORMATION
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Due to recent market conditions arising from the ongoing conflict in the Middle East, Vic Mix anticipates a significant increase to its existing fuel levy in the coming weeks and months. We understand customers will have questions, and the below information is provided to offer clarity and transparency.
Why is the fuel levy increasing?
We are currently experiencing a sharp rise in operating costs, particularly fuel, along with increases in energy and raw materials. These increases are largely driven by global supply disruptions linked to the ongoing conflict in the Middle East.
As fuel is a key component of production and transport, the existing fuel levy has been adjusted to reflect the current cost environment.
Is this a new charge?
No. This is not a new fee.
Vic Mix already applies a fuel levy as part of its pricing structure. The change is a significant increase to the existing levy to reflect current fuel and operating costs.
When does the increase take effect?
The revised fuel levy will apply from 1 April 2026.
Why does this apply to existing quotes or agreed rates?
All Vic Mix pricing, including quotes, is based on the market conditions at the time of issue. Where there are substantial changes to underlying costs, such as fuel, adjustments may be required. The current environment represents an unprecedented escalation in costs, which has made this increase necessary.
How is the fuel levy calculated?
The fuel levy is primarily based on movements in fuel pricing, referencing the Australian Institute of Petroleum (AIP) Diesel Terminal Gate Price. While fuel is the key driver, the levy also reflects a range of additional input cost increases already affecting the industry, including energy, raw materials, labour, and supply chain constraints, all of which contribute to the overall cost of operating our business.
Will the fuel levy continue to change?
Yes. The fuel levy is reviewed monthly and may increase or decrease depending on market conditions. Customers will be notified of any changes in writing in the final week of each month, with any updates effective from the start of the following month.
How long will the increased fuel levy remain in place?
At this stage, there is limited visibility on when fuel and supply conditions will stabilise.
We will continue to monitor the situation closely and adjust the levy as conditions change.
Where will I see the fuel levy?
The fuel levy will continue to appear as a separate line item on your invoice.
Does the fuel levy apply to all customers?
Yes, the fuel levy applies to all customers.
Are there any supply impacts I should be aware of?
At present, supply disruptions have been limited, although some pressure has been experienced in regional areas.
We continue to work closely with our suppliers and will communicate any changes that may impact your orders.
Can I cancel or change my order?
We understand that pricing changes may impact your decisions.
If you wish to cancel or amend an order, please contact us as soon as possible. We can also provide updated pricing reflecting current conditions if required.
Who can I speak to about this change?
Please contact your Vic Mix Sales Account Manager if you would like to discuss how this applies to your account.
Our commitment to customers
Vic Mix has absorbed cost increases where possible and has delayed this adjustment as long as possible. However, the scale and speed of recent increases mean that changes are now necessary.
We remain committed to:
• Transparent communication
• Reliable supply
• Supporting our customers through changing market conditions
We thank you for your valued support and understanding during this challenging period.
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