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 July 4, 2022

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RSW's Taxicab Fuel Surcharge: A Method to Mitigate the Rising Gasoline Fuel Prices Now and in the Future. September 14, 2014. Why is a Fuel Surcharge Even Necessary?. Current “modus-operandi” Erosion of taxi driver’s “profits” Keeping the playing field level. Taxicab Fuel - PowerPoint PPT Presentation

Transcript of RSW's Taxicab Fuel Surcharge: A Method to Mitigate the Rising Gasoline Fuel Prices Now and

Page 1: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

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

Page 2: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

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

Page 3: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

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

Page 4: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

Lee County Port Authority

Taxicab Fuel Surcharge Elements

1. Cost of Fuel

Page 5: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

Lee County Port Authority

Taxicab Fuel Surcharge Elements

1. Cost of Fuel

2. Zone Rate

Page 6: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

Lee County Port Authority

Taxicab Fuel Surcharge Elements

1. Cost of Fuel

2. Zone Rate

3. Zone Distance

Page 7: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

Lee County Port Authority

Taxicab Fuel Surcharge Elements

1. Cost of Fuel

2. Zone Rate

3. Zone Distance

4. Fleet miles per gallon

Page 8: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

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

Page 9: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

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

Page 10: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

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

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Lee County Port Authority

How The Fuel Surcharge Works

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Lee County Port Authority

1. First business day of the month …

How The Fuel Surcharge Works

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Lee County Port Authority

How The Fuel Surcharge Works

1. First business day of the month …

2. Review of previous month’s fuel prices…

Page 14: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

Lee County Port Authority

Page 15: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

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…

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Lee County Port Authority

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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

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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

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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

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Lee County Port Authority

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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

Page 22: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

Lee County Port Authority

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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.

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Lee County Port Authority

Question/Comments

Page 25: RSW's Taxicab Fuel Surcharge:  A Method to Mitigate  the Rising Gasoline  Fuel Prices Now and

Lee County Port AuthorityLee County Port Authority

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