Geopolitical Fuel Volatility Surcharge as Received from our service providers
At bicycle couriers we make use of 3rd parties for boxed bicycle deliveries. These are established courier companies. Typically the biggest players in the country. And their biggest variable input is the fuel price. Which have been going up at over 70% since the beginning of the year. and now they have introduced a Geopolitical Fuel Volatility Surcharge. Which means our costs are much higher. And we cannot absorb all of the impact. Hence our recent +R100 per boxed bike delivery as from yesterday. Explanation below. and hoping things revert back to normal soon.
Why are the fuel prices so high?
The high fuel prices in 2026 are primarily driven by the conflict in the Middle East, specifically involving the United States and Israel against Iran, following attacks in late February. The conflict has disrupted shipping through the Strait of Hormuz and pushed global oil prices up significantly. This strait between the Persian Gulf & the Gulf of Oman is a major gas & oil shipping route. Which calls for a Geopolitical Fuel Volatility Surcharge
Example of a Geopolitical Fuel Volatility Surcharge letter below.
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Dear Valued Client
Considering the increase in the diesel price of R5.27 per litre, we want to inform you that a Geopolitical Fuel Volatility Surcharge has been introduced. For your benefit we will adjust your rate to x-amount per kilogram added to your existing per kilogram rate for all services.
This adjustment will take effect from 6 May 2026.
As previously communicated, this remains a temporary measure introduced to offset the extraordinary fuel price pressures resulting from ongoing geopolitical instability. We will continue to monitor the situation closely and will adjust or withdraw this Geopolitical Fuel Volatility Surcharge as soon as conditions allow.
With thanks
Should you require any further clarification or wish to understand how this may impact your specific rates, please do not hesitate to contact us. We thank you for your continued support and understanding as we navigate these challenging conditions together. Please do not hesitate to contact me for discussion if need arises.
Regards, Mr so and so, Managing Director.
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Done
- And there you have it.
- Fuel up 70%. Our prices just up 10%.
- Now where can we send your boxed bicycle today?
1 Comment
[…] UPDATE: Geopolitical Fuel Volatility Surcharge – this is a new one. We make use of 3rd parties for delivering bicycles. And with the climbing fuel price they have built in a volatility surcharge. To try and ease the effect of the rapidly increasing fuel costs. […]