Formula for Instituting a Fuel Surcharge

INSTRUCTIONS: The OOIDA Fuel Surcharge Calculator is a Microsoft® Excel file. If you
do not
have Microsoft® Excel installed on your computer you can view online courtesy
of Zoho Sheet

 

 

Here's what your surcharge should be based on the average retail price in the region:

 

Weekly Retail On-Highway Diesel Prices ($ per gallon, including all taxes)

 


 Average retail price

11/21/2005

Amount of surcharge per mile *

New England 
(CT, ME, MA, NH, RI VT)

2.652

0.30

Central Atlantic
(DE, MD, NJ, NY, PA & DC)

2.615

0.30

Lower Atlantic
(FL, GA, NC, SC, VA, WV)

2.423

0.26

Midwest
(IL, IN, IA, KS, KY, MI, MN, MO,
NE, ND, SD, OH, OK, TN, WI)

2.477

0.27

Gulf Coast
(AL, AR, LA, MS, NM, TX)

2.491

0.27

Rocky Mtn.
(CO, ID, MT, UT, WY)   

2.654

0.30

West Coast
(AK, AZ, HI, NV, OR, WA)  

2.652

0.30

California

2.599

0.29

 

* These fuel surcharges are based on the average price of fuel in each region for the week indicated.

 

Here's what your surcharge should be based on the average retail price in the region:

 

 

Price per
Gallon
Surcharge
per mile is

Price per
Gallon
Surcharge
per mile is

$1.16 - $1.20

$0.01

$2.36 - $2.40

$0.25

$1.21 - $1.25

$0.02

$2.41 - $2.45

$0.26

$1.26 - $1.30

$0.03

$2.46 - $2.50

$0.27

$1.31 - $1.35

$0.04

$2.51 - $2.55

$0.28

$1.36 - $1.40

$0.05

$2.56 - $2.60

$0.29

$1.41 - $1.45

$0.06

$2.61 - $2.65

$0.30

$1.46 - $1.50

$0.07

$2.66 - $2.70

$0.31

$1.51 - $1.55

$0.08

$2.71 - $2.75

$0.32

$1.56 - $1.60

$0.09

$2.76 - $2.80

$0.33

$1.61 - $1.65

$0.10

$2.81 - $2.85

$0.34

$1.66 - $1.70

$0.11

$2.86 - $2.90

$0.35

$1.71 - $1.75

$0.12

$2.91 - $2.95

$0.36

$1.76 - $1.80

$0.13

$2.96 - $3.00

$0.37

$1.81 - $1.85

$0.14

$3.01 - $3.05

$0.38

$1.86 - $1.90

$0.15

$3.06 - $3.10

$0.39

$1.91 - $1.95

$0.16

$3.11 - $3.15

$0.40

$1.96 - $2.00

$0.17

$3.16 - $3.20

$0.41

$2.01 - $2.05

$0.18

$3.21 - $3.25

$0.42

$2.06 - $2.10

$0.19

$3.26 - $3.30

$0.43

$2.11 - $2.15

$0.20

$3.31 - $3.35

$0.44

$2.16 - $2.20

$0.21

$3.36 - $3.40

$0.45

$2.21 - $2.25

$0.22

$3.41 - $3.45

$0.46

$2.26 - $2.30

$0.23

$3.46 - $3.50

$0.47

$2.31 - $2.35

$0.24

   

                       

 

Small business owner-operators: JUST DO IT
How to implement a fuel surcharge

 

With the price of diesel fuel spiraling upward to a record high, if you have not incorporated a fuel surcharge into your operation, you must do it now. Small business owner-operators and motor carriers do not need to get government approval or file an application with DOT to implement a fuel surcharge. Here's how to do it.

 

1.  Notify your customers with a faxed memo. You can use this one for a guideline.

 

Dear xxxx,

 

As you are no doubt aware, fuel prices have spiraled upward over the past several months to their highest level in history. John Q. Trucking Company has acted in good faith to resist seeking price relief as long as we possibly could. Due to the critical nature of the current situation, we can no longer continue to absorb the increased cost.

 

Therefore, effective (insert date here), we must implement a temporary fuel surcharge on all shipments. The fuel surcharge will remain independent from our base rates and will be shown as a separate entry on our freight bill. The fuel surcharge amount will be charged on a mileage basis, reflecting the extra cost of the fuel used in the specific trip.

 

Our pricing is based on the U.S. National Average Diesel Fuel Index. We will review this data and our actual costs on a weekly basis. The figure used for cost per gallon is also region specific, established by the average cost of the fuel per gallon, the date and the load's origination point.

 

We deeply appreciate your understanding and partnership with us in helping to share the dilemma of these fuel cost increases. It's working together that will keep our nation strong during this time of crisis. We hope that by sharing this burden together, we can keep the goods and services that power the American economy moving.

 

Respectfully,

 

John Q. Trucker
John Q Trucking Company