Global fuel prices have increased significantly due to supply disruption. This is affecting many industries across New Zealand, including waste collection and transport. From April 2026, WM New Zealand will introduce a fuel surcharge across all commercial services. If your contract provides a longer notice period, it will apply from that date instead.
Our fuel surcharge is reviewed monthly using the Ministry of Business, Innovation and Employment (MBIE) diesel price monitor.
Because MBIE publishes fuel pricing information with a short delay, the surcharge is based on the latest available 30-day rolling average diesel price (excluding GST) at the time invoices are prepared.
|
Billing period |
MBIE diesel price used (30-day rolling average, excl. GST) |
Fuel surcharge |
|
May 2026 billing (applied from 1 June 2026) |
$2.84/L
|
3.42%
|
|
April 2026 billing (applied from 1 May 2026) |
$3.11/L |
4.53% |
This surcharge will be reviewed monthly and updated as required.
We use publicly available data from the Ministry of Business, Innovation and Employment (MBIE) to track fuel price movements. This ensures our fuel surcharge is based on an independent, transparent source. The surcharge is calculated on the average diesel price, using the ranges below as a guide.
|
MBIE Board excl GST Price Range $ / L |
Fuel Surcharge % on Invoice |
| $1.70 – $1.89 | 0.64% |
| $1.90 – $2.09 | 1.20% |
| $2.10 – $2.29 | 1.75% |
| $2.30 – $2.49 | 2.31% |
| $2.50 – $2.69 | 2.86% |
| $2.70 – $2.89 | 3.42% |
| $2.90 – $3.09 | 3.98% |
| $3.10 – $3.29 | 4.53% |
| $3.30 – $3.49 | 5.09% |
| $3.50 – $3.69 | 5.64% |
| $3.70 – $3.89 | 6.20% |
| $3.90 - $4.09 | 6.75% |
| $4.10 - $4.29 | 7.31% |
| $4.30 - $4.49 | 7.87% |
| $4.50 - $4.69 | 8.42% |
Fuel surcharge rates for landfills are reviewed monthly using the Ministry of Business, Innovation and Employment (MBIE) diesel price monitor.
The rates below are based on the latest available 30-day rolling average diesel price at the time charges are set. For the current period, the rolling 30-day average diesel price used was $3.11/L (excluding GST), resulting in the following surcharges:
| MBIE Board excl GST Price Range $ / L | Fuel Surcharge $ per tonne (Landfill) | |
| Redvale | Tirohia | |
| $1.70 – $1.89 | $0.68 | $0.81 |
| $1.90 – $2.09 | $1.13 | $1.35 |
| $2.10 – $2.29 | $1.59 | $1.89 |
| $2.30 – $2.49 | $2.04 | $2.44 |
| $2.50 – $2.69 | $2.50 | $2.98 |
| $2.70 – $2.89 | $2.95 | $3.52 |
| $2.90 – $3.09 | $3.40 | $4.06 |
| $3.10 – $3.29 | $3.86 | $4.60 |
| $3.30 – $3.49 | $4.31 | $5.14 |
| $3.50 – $3.69 | $4.77 | $5.68 |
| $3.70 – $3.89 | $5.22 | $6.22 |
| $3.90 - $4.09 | $5.67 | $6.77 |
We are working to reduce overall fuel use and manage costs, including:
We are continuing to deliver services as normal. We have plans in place to keep collections running and will prioritise services that protect public health and the environment if conditions change.
We can review your services to make these more efficient.
We can identify recycling solutions to reduce the total costs of your waste.
We can provide procurement and recovery advice that will reduce your waste to landfill.
Fuel is a core part of how we deliver our services, from collection trucks through to transport between sites. Recent global events have pushed fuel prices up sharply and quickly. We work hard to absorb normal fluctuations, but the scale of this increase means we need to adjust pricing to continue delivering safe, reliable services.
From 1 April 2026, or in line with your contract notice period.
A fuel surcharge will be shown as a separate line on your invoice. Your core service pricing remains unchanged.
The fuel surcharge currently applies to commercial and Technical Services customers. We will communicate separately with residential customers if anything changes.
A temporary charge the transport & logistics industry (and others) is adding to invoices in response to the recent global fuel crisis in the middle east to reflect the material increases in diesel costs above pre-incident levels. WM transports more waste than anyone else in NZ and has been hit particularly hard by the fuel crisis in the middle east, so we are no exception. We are showing this as a separate line item so our customers can clearly see it.
The fuel surcharge was introduced by WM from 1 April 2026 and will take effect in line with the notice period set out in each customer’s contract. For example, if your contract requires 28 days’ notice, the surcharge will only apply to you after that period.
The fuel surcharge is based on an independent statistical index published by MBIE tracking the average nationwide diesel price, excluding GST. We use a simple banded approach, where diesel prices are grouped into 20-cent ranges, and each range has a set percentage that is applied to your invoice.
This keeps things consistent and easy to follow. For example, if diesel sits between $2.70 and $2.89 per litre on the MBIE index, the surcharge applied to your invoice would be 3.42%. (Please note the MBIE index tends to be much lower than the retail price advertised by service stations.)
| MBIE Board excl GST Price Range $ / L | Fuel Surcharge % on Invoice |
| $1.70 – $1.89 | 0.64% |
| $1.90 – $2.09 | 1.20% |
| $2.10 – $2.29 | 1.75% |
| $2.30 – $2.49 | 2.31% |
| $2.50 – $2.69 | 2.86% |
| $2.70 – $2.89 | 3.42% |
| $2.90 – $3.09 | 3.98% |
| $3.10 – $3.29 | 4.53% |
| $3.30 – $3.49 | 5.09% |
| $3.50 – $3.69 | 5.64% |
| $3.70 – $3.89 | 6.20% |
| $3.90 - $4.09 | 6.75% |
| $4.10 - $4.29 | 7.31% |
| $4.30 - $4.49 | 7.87% |
| $4.50 - $4.69 | 8.42% |
We use the MBIE Weekly Fuel Price Monitor to track diesel prices. It’s a publicly available, independent source that reflects nationwide pricing, so customers can easily check the figures themselves and see how the surcharge is calculated. Please note that the MBIE index excludes GST and tends to be lower than the retail price advertised for fuel at most service stations.
The surcharge is reviewed monthly, using the average MBIE diesel price from the previous month. It adjusts up or down in line with changes in fuel prices.
The surcharge is applied as a percentage of the total invoice value, excluding GST. It isn’t split across different services or transport components and is shown as a separate line item so it’s clear what you’re being charged.
The surcharge is applied to the total invoice because diesel is used across the full service chain (including disposal costs), not just for transport. This includes collection vehicles, transfer and transport, and the heavy equipment used at our sites. Applying it this way keeps the approach simple, transparent, and easy for customers to understand and check.
No, the approach is the same. The surcharge is based on diesel as the primary fuel used across our operations, so it is applied consistently across all services, including frontload and mixed vehicle fleets, and the ultimate disposal or recovery costs.
If diesel prices go down, the surcharge will reduce in line with the relevant MBIE index price-band. If prices return to pre-incident levels, the surcharge will be removed.
No one wants this to be a permanent price increase. We all hope the crisis in the middle east abates soon. The surcharge was introduced with the expectation that it will be a temporary mechanism that tracks fuel price movements, reduces as fuel prices fall, and is to be removed once fuel prices return to pre-incident levels.
No, it doesn’t overlap with existing contract pricing or indexation. The surcharge is designed to recover only the increase in fuel costs above the baseline, and does not re-recover any costs already included in contracted rates. Where contracts which include a fuel indexation mechanism have that triggered before the surcharge is removed, we will review on a case-by-case basis to ensure there is no overlap.
Previous price reviews reflected ordinary fuel costs at the time they were calculated. The surcharge only applies to fuel price increases above those levels, with the threshold set above pre-incident diesel pricing.
At the time of writing, service stations are advertising diesel at around $3.50. But the MBIE Weekly Fuel Price Monitor index average is only $2.73 so WM customers could expect a surcharge typically in the range of around 3.42%. Global oil prices fluctuate so this may change. If prices increase further, higher bands apply. For example, prices above $3.30 per litre would result in a higher surcharge (for example, around 5.09%).
We use a percentage of invoice approach because it is widely used across the waste and logistics sector, and provides a simple and consistent way to apply the surcharge. It is transparent and based on publicly available data, so customers can easily check the calculation themselves.
No, electric vehicles are not excluded. While some parts of the fleet are electric, diesel is still used across the wider service, including transfer and processing, site equipment, disposal costs, and broader network operations. The surcharge reflects the cost of delivering the full service, not just individual vehicles.
It’s also only there to cover the material increase in diesel costs above the normal baseline. It isn’t a fixed cost that stays regardless of how we operate. We continue to look for improvements, like more efficient routing or operations, which might lower our overall costs, and that would be reflected over time through our usual pricing reviews.
Get in touch with our team of waste and recycling specialists for more information.
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