Nisa has ramped up its fuel levy from £3.66 to £6.10 per delivery, marking the first time the wholesaler has risen the fee in over a year, The Grocer can reveal.
Following six consecutive decreases to its fuel levy since it peaked at £13.43 in July last year, Nisa said it has now “reluctantly” increased it due to global oil prices reaching their highest level this year.
“Like many other wholesalers, Nisa reviews its fuel levy on a quarterly basis,” said a Nisa spokesman. “Despite six successive decreases to the fuel levy in line with previously reducing fuel costs, global oil prices are now at their highest level this year.
“As such, the fuel levy has been raised to cover the increased incremental cost of fuel and ensure a consistent and sustainable service for retailers.”
Nisa said it will continue to monitor the situation by tracking the cost of fuel on a quarterly basis and will make any necessary amendments.
It will also carry on reviewing its delivery days and operations to ensure it achieves “maximum efficiency for our network”.
Although Costcutter was bought by Bestway in 2021, Costcutter stores are still being supplied by the Co-op via Nisa until 2026, which means they are also subject to Nisa’s delivery charges.
In a letter sent to retailers, seen by The Grocer, Bestway retail director Jamie Davison said: “Please be advised that the fuel levy charge will increase to £6.10 + VAT per delivery from Monday 16 October.
“This is in response to the recent significant rise in fuel prices and based on the latest data and trends. We will closely monitor the market on a quarterly basis and inform you of any further changes.”
Bestway is, however, continuing its fuel levy refund scheme, whereby it will refund the fee to all Costcutter retailers spending £10,000 a week with Bestway.
The fuel levy credits are refunded in six-week intervals aligned with the rebate calendar. Payments will be calculated based on the number of deliveries undertaken within the rebate period.
“We appreciate your continued loyalty and will do everything possible to support you and your business,” added Davison.
Nisa fuel levy changes