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

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

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

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  1. RSW's Taxicab Fuel Surcharge: A Method to Mitigate the Rising Gasoline Fuel Prices Now and in the Future September 14, 2014

  2. Why is a Fuel Surcharge Even Necessary? • Current “modus-operandi” • Erosion of taxi driver’s “profits” • Keeping the playing field level

  3. Taxicab Fuel Surcharge Elements • Cost of Fuel • Zone Rate • Zone Distance • Fleet miles per gallon • Review of previous month’s history

  4. Taxicab Fuel Surcharge Elements • Cost of Fuel

  5. Taxicab Fuel Surcharge Elements • Cost of Fuel • Zone Rate

  6. Taxicab Fuel Surcharge Elements • Cost of Fuel • Zone Rate • Zone Distance

  7. Taxicab Fuel Surcharge Elements • Cost of Fuel • Zone Rate • Zone Distance • Fleet miles per gallon

  8. Taxicab Fuel Surcharge Elements • Cost of Fuel • Zone Rate • Zone Distance • Fleet miles per gallon • Review of previous month’s history

  9. Taxicab Fuel Surcharge Why didn’t we apply a simple 10 or 15 percent charge instead of going through this whole mathematical exercise? In a word – “fairness”

  10. How does this fit into the Conference Theme? (Looking ahead 5 years) • Elasticity • Proactive vs. Reactive • Fairness to the taxicab drivers

  11. How The Fuel Surcharge Works

  12. How The Fuel Surcharge Works First business day of the month …

  13. How The Fuel Surcharge Works First business day of the month … Review of previous month’s fuel prices…

  14. How The Fuel Surcharge Works First business day of the month … Review of previous month’s fuel prices… Evaluation of range…

  15. How The Fuel Surcharge Works First business day of the month … Review of previous month’s fuel prices… Evaluation of range… Computation of new fuel surcharge…

  16. Fuel Surcharge Formula 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.

  17. How The Fuel Surcharge Works First business day of the month … Review of previous month’s fuel prices… Evaluation of range… Computation of new fuel surcharge… Why compute each month…?

  18. How The Fuel Surcharge Works First business day of the month … Review of previous month’s fuel prices… Evaluation of range… Computation of new fuel surcharge… Why compute each month…? Various action items…

  19. How The Fuel Surcharge Works First business day of the month … Review of previous month’s fuel prices… Evaluation of range… Computation of new fuel surcharge… Why compute each month…? Various action items… Cycle repeats.

  20. Question/Comments

  21. Thank You www.flylcpa.com Lee County Port Authority

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