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The total price you pay for a product or service is
made up of two components:
a) Base Price; and b) Variable Price
In order to calculate the total price you pay, we add
these two components together, round the total to the nearest cent and then add
GST.
Our Base Price component is the price
for our services are set out in our pricing with you.
Our Variable Price component is
calculated as a percentage of the applicable Base Price. The percentage which
we apply to the applicable Base Price is called the Variable Fuel Rate (VFR).
The VFR changes from month to month because it is linked to the changing cost
of diesel. We use the VFR that applies on the date you move your product.
You can calculate the total price you pay according to
the following formula:
Base Price + (Base Price x VFR) = Total Price (excl
GST)
For example, if the base price of your service was
$5.00 and the VFR applying for August 2010 was 4.40%, then the total price you
pay would be $5.22 calculated as follows:
Total price (excl GST) = 5.00 + (5.00 x 4.40%) =
$5.22
Further information about the way we calculate the VFR
is set out below. For the current VFR see above.
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