BAF in road freight: how to check the fuel clause
Check the source, period and fuel adjustment formula with a hypothetical increase and decrease example.
What the BAF clause should say
BAF is a label used for a fuel-related adjustment. A road freight contract needs to define the mechanism: price source, reference value, fuel share and the rate component being adjusted. The label alone does not define a formula or an entitlement to add a charge.
- Source and series: country, diesel, currency, unit and whether taxes are included.
- Calculation period: a week or agreed average, effective date and review frequency.
- Parameters: reference price, negotiated share, threshold, cap and rounding, where specified.
- Direction: how fuel increases and decreases are treated and how the calculation appears on the invoice.
Hypothetical example with adjustment in both directions
All values below are chosen solely to explain the formula. They are not diesel quotations, Absolute Fides rates or parameters of the website calculator.
Assume a base rate of EUR 1,000, a reference of EUR 1.50/litre and an agreed fuel share of 30%. Compare the same series, currency, unit and tax basis.
Relative adjustment = (period price / reference price − 1) × fuel share. Adjusted rate = base rate × (1 + relative adjustment). A 30% share is entered as 0.30.
| Hypothetical scenario | Calculation | Result |
|---|---|---|
| Increase to EUR 1.65/litre | (1.65 / 1.50 − 1) × 0.30 = +3% | EUR 1,030; adjustment +EUR 30 |
| Decrease to EUR 1.35/litre | (1.35 / 1.50 − 1) × 0.30 = −3% | EUR 970; adjustment −EUR 30 |
The example excludes thresholds, caps, VAT and other surcharges. If present, the contract should define the order of application. Do not apply the fuel price change to the whole rate or add a component already included a second time.
How to check the reference and invoice
The European Commission’s Weekly Oil Bulletin publishes petroleum product prices by country, with and without taxes. Specify the contract series and retain dated values. Publication of the data does not establish a mandatory BAF formula or confirm a carrier’s commercial policy.
Related reading
Official sources
Planning a shipment?
Send the route, date, cargo and loading requirements. Availability, timing and price are confirmed for your request.
Request a quote