Continuing increases forced us to pass on a fuel levy in September 2004 that has fluctuated in relation to fuel price paid, evaluating set increases passed on by large companies and negotiation with key stakeholders.

The Balmana fuel levy schedule has been developed with consideration to the real cost increase in providing transport services over the past 18 months.

Detailed analysis has shown us that 5 cents per litre increase in fuel cost equates to a 1% increase in our cost of providing transport services.

The procedure effective from 1st October 2005 is outlined below:

• Real fuel price paid by Balmana vehicles will be used to calculate the following months fuel levy.

• Fuel levy will be set by the 20th day of the previous month.

• Fuel price paid will be calculated by averaging diesel purchased over the 3 weeks preceding the 20th day of the month.

• Fuel price set will be available to customers and used against the fuel levy schedule to set the next month’s levy.

• Should prices fall the levy will be reduced under this procedure.

Although regrettable, the continued implementation of this fuel levy is crucial to sustaining financial viability and providing the quality service levels all our customers enjoy.