Set a fuel surcharge
A fuel surcharge moves with the diesel price so your base rate does not have to.
You need
- A public diesel index
- A base diesel price
- Your truck's miles per gallon
Steps
- Pick the indexMost carriers use the EIA weekly on-highway diesel price for their region. It comes out on Mondays.
- Set the base priceThis is the diesel price already built into your base rate. Below it there is no surcharge.
- Choose the methodPer mile: price above base, divided by miles per gallon. Or a percent of the base rate that steps up with the index.
- Update it every weekUse the same day each week. Tell customers which day.
- Print the basis on the quoteIndex, region, base price and the date of the price you used.
The numbers
Example. Use your own numbers.| Diesel this week | $4.20 / gal |
| Base price | $3.00 / gal |
| Difference | $1.20 / gal |
| Truck | 6 mpg |
| Surcharge: $1.20 ÷ 6 | $0.20 / mile |
| Round trip | 90 miles |
| Fuel surcharge | $18.00 |
Watch out
A surcharge with no base price on the quote looks like a hidden fee.
Charge it on round trip miles, the same miles you priced.