rsw's taxicab fuel surcharge: a method to mitigate the rising gasoline fuel prices now and
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Lee County Port Authority
RSW's Taxicab Fuel Surcharge: A Method to Mitigate the Rising Gasoline Fuel Prices Now and in the Future
April 21, 2023
Lee County Port Authority
Why is a Fuel Surcharge Even Necessary?
1. Current “modus-operandi”
2. Erosion of taxi driver’s “profits”
3. Keeping the playing field level
Lee County Port Authority
Taxicab Fuel Surcharge Elements
1. Cost of Fuel
2. Zone Rate
3. Zone Distance
4. Fleet miles per gallon
5. Review of previous month’s history
Lee County Port Authority
Taxicab Fuel Surcharge Elements
1. Cost of Fuel
Lee County Port Authority
Taxicab Fuel Surcharge Elements
1. Cost of Fuel
2. Zone Rate
Lee County Port Authority
Taxicab Fuel Surcharge Elements
1. Cost of Fuel
2. Zone Rate
3. Zone Distance
Lee County Port Authority
Taxicab Fuel Surcharge Elements
1. Cost of Fuel
2. Zone Rate
3. Zone Distance
4. Fleet miles per gallon
Lee County Port Authority
1. Cost of Fuel
2. Zone Rate
3. Zone Distance
4. Fleet miles per gallon
5. Review of previous month’s history
Taxicab Fuel Surcharge Elements
Lee County Port Authority
Why didn’t we apply a simple 10 or 15 percent charge instead of going through this whole mathematical exercise?
In a word – “fairness”
Taxicab Fuel Surcharge
Lee County Port Authority
How does this fit into the Conference Theme? (Looking ahead 5 years)
1. Elasticity
2. Proactive vs. Reactive
3. Fairness to the taxicab drivers
Lee County Port Authority
How The Fuel Surcharge Works
Lee County Port Authority
1. First business day of the month …
How The Fuel Surcharge Works
Lee County Port Authority
How The Fuel Surcharge Works
1. First business day of the month …
2. Review of previous month’s fuel prices…
Lee County Port Authority
Lee County Port Authority
How The Fuel Surcharge Works
1. First business day of the month …
2. Review of previous month’s fuel prices…
3. Evaluation of range…
Lee County Port Authority
Lee County Port Authority
1. First business day of the month …
2. Review of previous month’s fuel prices…
3. Evaluation of range…
4. Computation of new fuel surcharge…
How The Fuel Surcharge Works
Lee County Port Authority
FS = (MVIR – 2.33) / FAMPG * AVZRT where
FS = is the Fuel Surcharge to be determined;
MVIR = is the mid-point value of the price of fuel based on thirty (30) cent increments starting at $3.00;
2.33 = the baseline price of fuel at the time of initiation of the demand taxicab concessionaire’s contract;
FAMPG = the miles per gallon as a constant based on the demand taxicab’s fleet composition. As of January 2008, this constant was 15 miles per gallon;
AVZRT = the average round trip miles for each zone.
Fuel Surcharge Formula
Lee County Port Authority
1. First business day of the month …
2. Review of previous month’s fuel prices…
3. Evaluation of range…
4. Computation of new fuel surcharge…
5. Why compute each month…?
How The Fuel Surcharge Works
Lee County Port Authority
Lee County Port Authority
1. First business day of the month …
2. Review of previous month’s fuel prices…
3. Evaluation of range…
4. Computation of new fuel surcharge…
5. Why compute each month…?
6. Various action items…
How The Fuel Surcharge Works
Lee County Port Authority
Lee County Port Authority
How The Fuel Surcharge Works
1. First business day of the month …
2. Review of previous month’s fuel prices…
3. Evaluation of range…
4. Computation of new fuel surcharge…
5. Why compute each month…?
6. Various action items…
7. Cycle repeats.
Lee County Port Authority
Question/Comments
Lee County Port AuthorityLee County Port Authority
www.flylcpa.com
Thank You
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