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Domestic Fuel Surcharge Information - FedEx Express Transportation and Supply Chain Services (India) Private Limited (hereinafter referred to as "AFL Logistics")

Current Surcharge:

AFL Logistics - Air Distribution

Surcharge - 34%

Effective Date - Feb 6, 2012 - Mar 4, 2012

AFL Logistics - Ground Distribution

Surcharge - 26%

Effective Date - Feb 6, 2012 - Mar 4, 2012

Fuel Surcharge Policy on FedEx TSCS (AFL Logistics - Air Distribution services)

The Dynamic System of Fuel Surcharge on air distribution services will reflect the volatility in the domestic price movements of Aviation Turbine Fuel ("ATF") for Domestic Airlines and will bring in the element of transparency in our position on Fuel Surcharge on a monthly basis. The note below explains the methodology on the calculation of the Dynamic Fuel Surcharge

How will Fuel Surcharge for AFL Logistics- Air Distribution services be calculated on a monthly basis?

Effective September 5, 2011 AFL Logistics- Air Distribution would be moving to a Dynamic Fuel Surcharge Policy on its air distribution services - with a start percentage of 32%
Domestic Fuel Surcharge Percentage for AFL Logistics- Air Distribution would be based on the average selling price (per kilo/ litre) for Domestic Airlines of ATF of Indian Oil Corporation Limited (published on their website www.iocl.com) in the four metros of Delhi, Mumbai, Chennai and Kolkata in India
Under the dynamic system, our Fuel Surcharge Percentage on AFL Logistics- Air Distribution services will change from the first Monday of every calendar month and will take into account the price movements (per kilo/ litre) of ATF two months prior to the effective month of change. Example: The Dynamic Domestic Fuel Surcharge effective September 5th, 2011 (from the first Monday of the September calendar month) until October 2nd, 2011 (the Sunday before the first Monday of the October calendar month) will take into consideration the percentage variation in the average selling prices (per kilo/ litre of four metros Delhi, Mumbai, Chennai & Kolkata) of Aviation Turbine Fuel (ATF) of Indian Oil Corporation Limited (published on their website www.iocl.com) in the month over month.
From September 2011 onwards, every 4.0% increase in the average selling prices (per kilo/ litre) of Aviation Turbine Fuel (ATF) of Indian Oil Corporation Limited will translate into a 1.0% increase in our Domestic Fuel Surcharge percentage on AFL Logistics- Air Distribution services. Every 8.0% decrease in the average selling prices (per kilo/ litre) of Aviation Turbine Fuel (ATF) of Indian Oil Corporation Limited will translate into a 1.0% decrease in our Domestic Fuel Surcharge percentage on AFL Logistics- Air Distribution services. Likewise, every 2.0% increase or 4.0% decrease in the average selling prices (per kilo/ litre) of Aviation Turbine Fuel (ATF) of Indian Oil Corporation Limited will translate into a 0.5% increase or decrease in our Domestic Fuel Surcharge percentage on AFL Logistics- Air Distribution services.
Information on the Fuel Surcharge percentage for the current month and the next month will be published on our website www.afl.co.in one week prior to the change date of every month.
AFL Logistics reserves the right to change the method of calculating the fuel surcharge in the future at its sole and absolute discretion.

The table below shows the calculation of the Dynamic Fuel Surcharge of 34% effective from February 6, 2012 till March 4, 2012.

IOCL ATF Prices for Domestic Airlines (INR. Kilo Litre)						4 Cities ATF Average (MoM %)	MoM DFS % Change	DFS Applicable Month	Fuel Surcharge%
Months	Delhi	Kolkata	Mumbai	Chennai	Average of 4 Cities	4 Cities ATF Average (MoM %)	MoM DFS % Change	DFS Applicable Month	Fuel Surcharge%
16-Dec-11	63,739	72,021	64,730	68,596	67,272	2.3%	0.5%	February-12	34%
16-Nov-11	62,310	70,465	63,228	67,018	65,755	6.86%	2.00%	January-12	33.5%
16-Oct-11	58,271	66,208	59,021	62,647	61,536	0.9%	0.0%	December-11	32.0%
16-Sep-11	57,689	65,666	58,452	62,074	60,970	1.7%	0.5%	November-11	32.0%
16-Aug-11	56,688	64,625	57,424	61,013	59,938	0.6%	0.0%	October-11	31.5%
16-Jul-11	56,325	64,257	57,032	60,621	59,559	-2.6%	-0.5%	September-11	31.5%

Note: Source of ATF prices for Domestic Airlines is Indian Oil Corporation Website: www.iocl.com as on 17th December 2011. All disputes will be subject to the exclusive jurisdiction of the courts at Mumbai.

Fuel Surcharge Policy on AFL Logistics- Ground Distribution

Effective September 5th , 2011 AFL Logistics- Ground Distribution would be moving to a percentage based Fuel Surcharge Policy - with a start percentage of 26%
Domestic Fuel Surcharge Percentage for AFL Logistics- Ground Distribution services would be based on the average selling price (per litre) for diesel of Indian Oil Corporation Limited (published on their website www.iocl.com) in the four metros of Delhi, Mumbai, Chennai and Kolkata
From September 5th, 2011 onwards, every 3% increase in average diesel prices across the four metros will translate into a 1% increase in our Domestic Fuel Surcharge percentage on AFL Logistics- Ground Distribution services and every 3% decrease in Diesel prices will translate into a 1% decrease. Likewise every 1.5% increase or a 1.5% decrease translates into a 0.5% increase or a 0.5% decrease in our Domestic Fuel Surcharge percentage on AFL Logistics- Ground distribution services.
Information on the Fuel Surcharge percentage for the current month and the next month will be published on our website www.afl.co.in, one week prior to the change date of every month.
AFL Logistics - Ground Distribution reserves the right to change the method of calculating the fuel surcharge in the future at its sole and absolute discretion.

Following table reflects diesel prices across the four metros in India

IOCL Prices for Non branded Diesel (INR. Rs./Litre)						DFS Applicable Month	Fuel Surcharge%
Months	Delhi	Kolkata	Mumbai	Chennai	Average of 4 Cities	DFS Applicable Month	Fuel Surcharge%
25-Jun-11	41.12	43.57	45.84	43.8	43.58	February-12	26.0%

Note: of Diesel prices is Indian Oil Corporation Website: www.iocl.com as on 17th December, 2011. This table will be updated as and when there will be a change in diesel prices.
All disputes will be subject to the exclusive jurisdiction of the courts at Mumbai.