How a fuel surcharge is calculated
A fuel surcharge pays back part of the fuel cost when diesel rises above a price the agreement calls the base. It uses the program's numbers, not your truck's, so it is worth knowing exactly how it is figured.
The formula
Surcharge per mile = (diesel price − base price) ÷ MPG in the agreement. Trip surcharge = surcharge per mile × miles on the load. When diesel is at or below the base, the surcharge is zero. The diesel price is usually the EIA weekly on-highway diesel average, national or regional, for the week the agreement names.
What the surcharge does not cover
- Deadhead miles. The surcharge is paid on the loaded miles in the agreement; the empty miles to the pickup burn fuel at full price.
- A truck that gets less than the program's MPG. At 5 MPG the real cost of the fuel above the base is $0.50 a mile, not $0.417.
- The fuel below the base price. The base is the part of the fuel cost that the linehaul rate is supposed to carry, so a low linehaul with a generous surcharge can still be a poor load.
Compare the surcharge with your actual fuel cost per mile from the load profit calculator before you decide a rate is fair.
Open the fuel surcharge calculator
Questions
What is the formula for a fuel surcharge per mile?
Surcharge per mile equals the current diesel price minus the base price in the agreement, divided by the miles per gallon the agreement assumes. Multiply by the miles on the load for the trip total. When diesel is at or below the base, the surcharge is zero.
Which diesel price does a fuel surcharge use?
Most programs use the U.S. Energy Information Administration's weekly national or regional average on-highway diesel price, published every Monday. The agreement names the week and the region; check it, because a regional price can differ from the national one.
Why does my surcharge not cover my fuel?
Because the program's base price and MPG are not your truck's. A base of $1.25 and 6 MPG pays the same per mile whether your truck gets 5 or 8, and it pays nothing for deadhead miles. Compare the surcharge with your actual fuel cost per mile before you decide a rate is fair.
More guides
- How to figure your rate per mile
- What deadhead miles really cost
- How to check a freight broker before you book
Worked examples use the numbers shown and are not financial or pricing advice. Every member sets their own rates.