DX FUEL SURCHARGE RATES

• Diesel prices represent a highly significant element of DX Group’s overall cost base

• Diesel prices have risen significantly since January 2010

• Whilst DX seeks to offset fuel cost increases through improved  efficiencies,  cost  increases are such that they must be passed on to Customers in the form of a fuel surcharge

• In establishing a fuel surcharge policy DX seeks to be:

o Comparable with our competitors and market practice

o Clear and consistent – with surcharges based upon average prices published by the AA

o Fair to Customers – with surcharges going up and down in line with published prices

• All Customer contracts will include a base price for diesel
• As each Customer invoice is raised the ruling price for diesel published by the AA will be compared to each Customer’s base price:

        o   For every 1p (or part thereof) upwards movement in published pence per litre diesel prices DX will apply a 0.175% fuel surcharge  to each invoice

        o   For every 1p (or part thereof) downwards movement in published pence per litre diesel prices  DX will apply a 0.175% fuel rebate  to each  invoice

• At every annual price review, existing fuel surcharges/rebates will be rolled into the delivery tariff and the base price for diesel will be reset to the ruling market price at that time

Source : Automobile Association (AA)