WELLINGTON, April 22, 2026 — New Zealand’s Commerce Commission has issued new guidance reminding businesses that fuel surcharges must reflect genuine increases in fuel costs and comply with the country’s consumer protection laws.
The regulator said that while fuel surcharges can be a legitimate way for companies to recover unexpected cost increases, they must be accurate, transparent and directly linked to real fuel price pressures.
Surcharges must reflect actual costs
According to the Commission, businesses should regularly review any surcharges to ensure they remain justified and should not use them to recover unrelated expenses or increase profit margins.
The authority warned that claiming a fuel surcharge without a proper basis could breach the Fair Trading Act, which prohibits unsubstantiated or misleading representations about the price of goods or services.
Companies must also ensure customers are clearly informed about any surcharge before payment, allowing them to take the additional cost into account when making purchasing decisions.
Transparency required in pricing mechanisms
The regulator also highlighted the use of Fuel Adjustment Factors (FAF), a pricing mechanism commonly used by freight and transport operators to account for fluctuations in fuel prices.
Unlike fixed surcharges, FAF systems adjust pricing up or down depending on changes in fuel costs, typically appearing as a separate line on invoices or quotes.
Businesses using FAF mechanisms should explain clearly how the adjustment is calculated so that customers can understand how pricing responds to fuel price movements.
Adjustments expected when fuel prices fall
The Commission stressed that pricing mechanisms must work in both directions. If fuel costs decline, any surcharge or adjustment factor should also be reduced accordingly.
The authority encouraged businesses to engage with it early and follow its guidance to ensure compliance with consumer law.
