Nisa is ramping up its fuel levy again from £9.77 to £13.43 per delivery.
In a letter sent to retailers, seen by The Grocer, the wholesaler said the rise in fee was to cover the “increased incremental cost of fuel” it was experiencing.
“Although the cost of fuel is now so much higher, we have been absorbing the incremental costs in what was left of the last quarter as we agreed to only review the levy on a quarterly basis,” the letter said.
“However, following the quarterly review of the fuel levy, we can now confirm that we will have to raise the fuel levy amount to £13.43 per delivery to cover the increased incremental cost of fuel we’re experiencing, and this will be effective from week commencing 11 July.”
Nisa’s fuel levy was first put in place in February at £4.88. It was brought in on a “sliding scale to offset the incremental costs of significant fuel price escalation”.
The levy was then doubled to £9.77 in early April.
The letter to retailers added: “To give you some context as to the need for the levy charge increase, we purchase 12 million litres of fuel a year and so every 1p increase in fuel price increases costs by £120,000 or £2,300 per week.
“We agreed to review the fuel price at the end of every quarter and the current levy of £9.77, set at the end of Q1, was based on a four-weekly fuel price of £1.41.
“As of the end of Q2, the four-weekly fuel price now stands at £1.57, a 16 pence or 11% increase, adding further £33,600 a week in fuel costs which in the current environment we can’t continue to absorb.”
The symbol group went on to say the reason it had opted for a fuel levy rather than building the increased costs in PLOF (price list order form) prices was that “it believed that these fuel prices were temporary and wanted to de-escalate equally as quickly”.
The letter included a scale that determines the price of its fuel levy.
“When we review each quarter, we will review the price we’re being charged at that point in time and the band that sits in and will adjust the levy charge accordingly (either up or down),” it added.
The highest fuel levy on the scale worked out at £19.53.
Nisa has been approached for further comment.