Symbol group retailer Nisa has announced it is increasing its fuel levy again from £9.77 to £13.43 per delivery.
In a letter sent to retailers, seen by The Grocer, the wholesale group revealed the increase in fee was to cover the “increased incremental cost of fuel” it was facing.
The letter said: “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.
“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.”
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The move follows Nisa introducing fuel levy in February, with the price of £4.88, however, in less than three months, the levy doubled to £9.77 in April.
The letter 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.”
According to Nisa, it had opted for a fuel levy instead of increasing the costs in its PLOF (price list order form) , and believed the fuel prices “were temporary and wanted to de-escalate equally as quickly”.
The highest fuel levy on the scale worked out at £19.53.
Grocery Gazette has contacted Nisa for comment.
