Managing fuel expenses is a fundamental challenge for transportation companies, especially when fuel prices fluctuate rapidly. Unpredictable spikes can erode margins if flat rates are in place. A fuel surcharge provides a practical solution by allowing carriers to recover increased fuel costs in a fair, transparent way.
This guide includes our fuel card surcharge calculator to help you determine the appropriate surcharge rate per mile. You'll learn step-by-step how to calculate a fuel surcharge and see how fleet fuel cards can supply the real-world data required for setting accurate, competitive rates. By the end, you’ll know how to set fuel surcharge rates that safeguard your profitability without pricing yourself out of the market for loads.
Table of Contents
- Fuel surcharge calculator
- How to calculate a fuel surcharge
- Use fuel cards to get actual fuel price data for fuel surcharges
- Fuel surcharge frequently asked questions
Fuel Surcharge Calculator
How to Calculate a Fuel Surcharge
| Step | Fuel Surcharge Formulas |
| 1. Calculate fuel price difference | Current fuel price - baseline fuel price = fuel price difference |
| 2. Get the fuel surcharge rate | Fuel price difference ÷ average mpg = fuel surcharge rate per mile |
| 3. Total the surcharge | Fuel surcharge rate per mile * total trip miles = total fuel surcharge |
Step 1: Calculate the Fuel Price Difference
| Formula | Current fuel price - baseline fuel price = fuel price difference |
| Example | $4.00 - $3.00 = $1.00 |
Get the Current Fuel Price
You need to get the current fuel price to charge the difference above the baseline fuel price. Here are some sources you can use to get current fuel prices:
- U.S. Energy Information Administration(EIA) Gasoline and Diesel Fuel Update: This site provides weekly fuel prices by region across the U.S., and is a popular fuel pricing resource that transportation companies rely on for current fuel price data.
- AAA Fuel Prices: This website gives average daily retail fuel prices by metro area and state. Since it's updated daily and provides prices for specific metro areas rather than just regions of the country, this source provides more specific and current fuel pricing data.
Establish a Baseline Fuel Price
The baseline fuel price is the fuel cost where no surcharge gets added. It’s up to the transportation company to set, and policies vary. Some of the most common ways to decide on a baseline fuel price include:
- Negotiating a base rate with the shipper
- Using the average fuel price from the past 12 months
- Setting the price based on fuel costs at the time the load was quoted
- Referencing surcharge tables from larger transportation companies
Subtract the Baseline Price from the Current Price
Subtracting the baseline price from the current fuel price will give you the per gallon price difference that you are going to charge to the customer.
Step 2: Get the Fuel Surcharge Rate
| Formula | Fuel price difference ÷ average mpg = fuel surcharge rate per mile |
| Example | $1.00 ÷ 6 MPG = $0.17 per mile |
Get Your Average MPG
Most trucks average between 6 and 8 miles per gallon (MPG). You can use your fleet’s actual MPG or fall back on the industry standard of around 6-7 MPG. Your true MPG can usually be pulled from your fleet fuel card reports or telematics data. If you’re not running a trucking fleet, just use the average MPG for your specific type of vehicles.
Divide the Fuel Price Difference by MPG
Dividing the fuel price difference will give you a cost per mile fuel surcharge rate.
Step 3: Total the Fuel Surcharge
| Formula | Fuel surcharge rate per mile * total trip miles = total fuel surcharge |
| Example | $0.17 per mile * 500 miles = $85 |
Multiply the Total Trip Miles by the Surcharge Rate
Use Google Maps or GPS to find the total trip miles. Multiply the total trip miles by the per mile fuel surcharge rate to list the fuel surcharge total on the invoice or quote.
Use Fuel Cards to Get Actual Fuel Price Data for Fuel Surcharge
Fleet fuel cards track key data with every fill up and organize it into reports you can access right from your fuel card portal. These reports give you valuable fuel surcharge insights like:
- Average fuel cost by city or state to help set your baseline fuel rates
- Average fuel cost over a specific time period so you can set base rates based on real historical data
- Average MPG by vehicle to help calculate fuel surcharge rate per mile
With this info, you can compare against your baseline rates to make sure your surcharges are high enough to protect profit, but still competitive enough to win loads.
Fuel Surcharge Frequently Asked Questions
What is a Fuel Surcharge?
A fuel surcharge is how transportation and service companies pass rising fuel costs on to their customers when prices climb above average rates. Without fuel surcharges, many companies would risk losing money, or even going out of business, since flat-rate pricing often can’t cover the impact of volatile fuel prices.
How Does a Fuel Surcharge Work?
When scheduling a load, transportation companies set a baseline fuel price with the shipper. If fuel costs are higher at the time of delivery, they charge the difference as a fuel surcharge.
Who Pays Fuel Surcharge?
Shippers or customers pay fuel surcharges to transportation companies in addition to freight rates for transporting goods.
What is the Fuel Surcharge This Week?
The best way to find current fuel prices to calculate the fuel surcharge this week is to visit U.S. Energy Information Administration(EIA) Gasoline and Diesel Fuel Update or AAA Fuel Prices. You can then enter this data into the fuel surcharge calculator to estimate the fuel surcharge this week.
What Types of Businesses Use Fuel Surcharges?
Fuel surcharges are primarily used by trucking companies. However, some service companies such as plumbers, landscapers, electricians, etc. may charge a surcharge rate per trip during fuel price spikes.
Are Fuel Surcharges Legal?
Yes, fuel surcharges are legal and currently have little regulation in the United States. Market factors seem to keep fuel charges in check as transportation companies have to compete for contracts.
Gain Fuel Price Insights with P-Fleet Fuel Cards
With P-Fleet’s Voyager and CFN fuel cards, you get access to both recent and historical fuel prices tied to your fleet’s transactions. The CFN pricing map also shows you current cost-plus fuel prices at CFN locations. With these insights, you can calculate accurate fuel surcharges, track costs by vehicle, and generate IFTA fuel reports.
Having all this data in one place makes it easier to stay on top of your fleet’s fuel expenses. Instead of digging through receipts or guessing at fuel price averages, you’ll have real numbers to work with, broken down by driver, vehicle, and location. That means you can confidently set fuel surcharges that protect your profit, while keeping your rates competitive enough to win loads.
And since all reports are ready to download from your online portal, your accounting team saves hours every month on expense tracking and compliance reporting. With P-Fleet, you’re not just cutting fuel costs, you’re getting the data you need to run your business smarter.
