The New Zealand competition authority advises businesses to regularly review their fuel surcharges to ensure they are accurate and justified. Businesses are encouraged to engage with the authority early and follow the provided guidance to comply with the Fair Trading Act.

Fuel surcharges should only reflect the additional fuel costs incurred by businesses and must not be used to recover unrelated expenses or to increase profit margins. Any surcharge must be based on real and current cost pressures.

Customers must be informed of any fuel surcharges before payment, ensuring that these charges are clear and understandable. Under the Fair Trading Act, it is illegal to make unsubstantiated claims about goods or services, including false or misleading representations regarding pricing.

Businesses should avoid making fuel surcharging claims without reasonable grounds for their accuracy. The authority also explains the Fuel Adjustment Factor (FAF), a pricing mechanism used by transport and freight operators to manage fuel price volatility transparently.

Companies using a FAF must communicate clearly with customers about how this pricing mechanism works, ensuring that customers understand how prices respond to fuel price changes. The authority expects any surcharges or FAFs to decrease as fuel costs decline.