To our customers,
From January 2022, we will increase our general fuel surcharge for domestic road transports in Sweden from 17.6% to 22.0%. Below, please find the background to this change.
Frigoscandia’s vision is to become a climate-positive company. Also, we meet strong demands, not least from our customers, to reduce our climate impact and accordingly we have set an ambitious strategic goal to have a fossil-free operation by 2025. Our green transition is started, and we use increasing proportions of the fossil-free fuels available on the market, primarily HVO100, B100 (FAME) and biogas. Frigoscandia’s operation is already fossil-free in some traffic lanes, certain regions, or in specific customer assignments and our map will gradually expand with more “green puzzle pieces” to a fully fossil-free operation by 2025.
The vision to become a climate-positive company is an essential foundation of our business. It is also an important factor for our customers in their choice of logistics partner. We must join efforts to be able to create a sustainable transport sector and contribute to reaching the global climate goals. Changes in external factors do not change our goals but can affect what measures we need to take to achieve the goals.
From January 1, 2022, the Swedish government has increased the greenhouse gas reduction mandate for petrol and diesel. Economic operators that are taxable for petrol and/or diesel are by law (Act 2017:1201 on reduction of greenhouse gas emissions by mixing of biofuels in petrol- and diesel fuels) bound to reduce the climate impact of their petrol and/or diesel by a certain percentage every calendar year. The reduction levels are now required to be at least 7.8 percent for petrol and at least 30.5 percent for diesel fuel. To reach the required target percentages, fuel suppliers will need to increase the biofuel blend in their petrol and diesel https://www.riksdagen.se/sv/dokument-lagar/dokument/svensk-forfattningssamling/lag-20171201-om-reduktion-av-vaxthusgasutslapp_sfs-2017-1201 and Swedish Energy Agency: https://www.energimyndigheten.se/fornybart/hallbarhetskriterier/reduktionsplikt/
The increased greenhouse gas reduction mandate has immediately had major effects on fuel prices. Fuel suppliers have raised the prices for fossil-free fuels HVO100 by about 21% and B100 (FAME) by about 11% and the fossil MK1 diesel by about 7%. This greatly affects Frigoscandia’s fuel costs and with the prevailing price differences between fossil and fossil-free fuels, we can no longer base our general fuel surcharge solely on the cost development of fossil MK1 diesel as before. The proportion of fossil-free fuels in our portfolio is significant and increasing, and in order to adhere to our and our customers’ climate goals, we must now start basing the fuel surcharge on the cost development of the actual mix of fuels we use.
From January 2022, we will accordingly adjust the underlying calculation or our general fuel surcharge to comprise the actual fuels, including biofuels, that are used in our transportation network. The calculation will be updated monthly, both regarding the mix of fuels and the price changes for each fuel. Furthermore, this means that from January we will increase our general fuel surcharge from 17.6% to 22.0%.
If you have any questions about the fuel surcharge, please contact us via email@example.com and we will get in touch as soon as possible.
Frigoscandia, Head of Sales