Our company provides transport services to its staff for travel to and from their house to the office. In light of the continued increase in fuel prices our service provider has requested for a review of contract price to reflect the changes in fuel rate.
Fuel price as per contract: Rs 63.32
Fuel Price as per communication date (30 August): Rs 71.83
Increase %: 12.67%
The contract has fixed Kilometres and fixed price provided: example: 50000 kms = Rs 15,00,000
Can you please advise the formula to calculate the increase that should be added to the contract value. Is there a formula that the industry uses as a standard?