How to calculate a fuel surcharge
- Surcharge per mile = (current diesel price − base price) ÷ MPG
- If diesel is at or below the base price, the surcharge is $0
- Surcharge for the load = surcharge per mile × miles
- All-in pay = linehaul + surcharge
The base price and MPG come from your contract or the shipper's surcharge table. They are not the same for every customer.
Worked example
An example contract with a $1.25 base price and 6 MPG, diesel at $3.75, and a 1,000-mile load paying $2,000 linehaul:
| Price above base | $3.75 − $1.25 = $2.50 |
|---|---|
| Surcharge per mile | $2.50 ÷ 6 = $0.417 |
| Surcharge for 1,000 mi | $416.67 |
| Linehaul + surcharge | $2,416.67 ($2.417 per mile) |
Why the fuel surcharge matters
Fuel is one of the biggest costs of running a truck, and it changes every week. A fuel surcharge moves your pay with the diesel price, so a rate that was fair when diesel was cheap still covers fuel when it goes up. If a rate confirmation has no surcharge, check that the linehaul rate already covers fuel at today's price.
FAQ
How do you calculate a fuel surcharge in trucking?
Subtract the base fuel price in your contract from the current diesel price, then divide by the MPG the contract uses. That gives the surcharge per mile. Multiply by the miles on the load for the total. With diesel at $3.75, a $1.25 base and 6 MPG, the surcharge is $2.50 ÷ 6 = about $0.417 per mile.
What diesel price is a fuel surcharge based on?
Most contracts name a published average, very often the U.S. Energy Information Administration (EIA) weekly on-highway diesel price, which many shippers still call the DOE price. Some use a regional EIA average instead of the U.S. one. Use whatever your contract or the shipper's table says.
What is the base price (peg) in a fuel surcharge?
It's the diesel price at which the surcharge is zero, because the linehaul rate already covers fuel up to that price. Every shipper or broker sets its own base, so check the contract or surcharge table. When diesel is at or below the base, there is no surcharge.
Is the fuel surcharge paid on deadhead miles?
Usually not. Most surcharges are paid on the loaded (billed) miles on the rate confirmation. Your truck burns fuel on deadhead too, which is why your cost per mile should include all miles.
Is fuel surcharge included in an all-in rate?
On spot loads brokers often quote one all-in rate that already includes fuel. Contract freight more often pays linehaul plus a separate surcharge that moves with the weekly diesel price. Ask which one you're being quoted before you compare rates.
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