Enter the monthly average price ($) and the tender base price of fuel ($) into the Calculator. The calculator will evaluate the Fuel Adjustment Factor. 

Fuel Adjustment Factor Formula

FAF = AP - TBP

Variables:

  • FAF is the Fuel Adjustment Factor ($)
  • AP is the monthly average price ($)
  • TBP is the tender base price of fuel ($)

To calculate Fuel Adjustment Factor, subtract the tender base price of the fuel from the monthly average price.

How to Calculate Fuel Adjustment Factor?

The following steps outline how to calculate the Fuel Adjustment Factor.

  1. First, determine the monthly average price ($). 
  2. Next, determine the tender base price of fuel ($). 
  3. Next, gather the formula from above = FAF = AP – TBP.
  4. Finally, calculate the Fuel Adjustment Factor.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

monthly average price ($) = 500

tender base price of fuel ($) = 400