Calculate fuel surcharge per mile based on current diesel prices, base fuel rate, and fleet MPG. Uses the standard industry formula referenced by the DOE diesel index.
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A fuel surcharge (FSC) is an additional fee added to freight invoices to offset fluctuations in diesel fuel prices above an agreed-upon baseline. Nearly every truckload and LTL freight contract in North America includes a fuel surcharge provision. The surcharge protects carriers from absorbing the full impact of rising fuel costs while giving shippers transparency into how fuel price changes affect their transportation spend.
The most common method for calculating fuel surcharges uses the DOE (Department of Energy) national average diesel price, published weekly by the Energy Information Administration. Carriers and brokers compare the current DOE price against a base fuel price established in their rate agreement. The difference is divided by the fleet's average miles per gallon to determine the per-mile surcharge amount.
The EIA surveys approximately 900 retail diesel fuel outlets across the United States every week and publishes the national average on Monday. This price serves as the industry benchmark for fuel surcharge calculations. Most freight contracts specify which week's DOE price applies to a given shipment, typically the week the load is tendered or the previous week's published price. Some regional carriers use regional DOE averages instead of the national figure for more accurate local pricing.
The base fuel price is the negotiated floor in a freight contract below which no surcharge is applied. Historically, base prices ranged from $1.10 to $1.25 per gallon when fuel costs were lower. As diesel prices have risen over the years, some newer contracts set the base at $1.35 to $1.50. The lower the base price, the higher the surcharge at any given current price, so this figure significantly impacts carrier revenue and shipper costs.
The per-mile method calculates surcharge based on the formula shown above and adds a flat per-mile amount to the freight rate. The percentage method instead calculates the surcharge as a percentage of the line-haul revenue. Both approaches are common in the industry. Per-mile FSC is more transparent and directly tied to fuel costs, while percentage-based FSC can sometimes over- or under-compensate depending on the base rate and lane distance.
TruckerPro automatically calculates and applies fuel surcharges to invoices based on your contract settings. No manual math required.
Free SignupFuel surcharge is calculated using the formula: FSC Per Mile = (Current Fuel Price - Base Fuel Price) / Fleet MPG. The total surcharge equals the per-mile rate multiplied by the total miles of the trip. The base fuel price is set in the carrier's rate agreement, typically between $1.10 and $1.50 per gallon.
The U.S. Department of Energy (DOE) publishes a weekly national average diesel fuel price through the Energy Information Administration (EIA). This price is widely used as the benchmark for fuel surcharge calculations in freight contracts. The index is updated every Monday and reflects prices from approximately 900 retail diesel outlets across the country.
The base fuel price varies by contract but typically ranges from $1.10 to $1.50 per gallon of diesel. This baseline was historically set when fuel prices were lower and serves as the floor below which no surcharge applies. Some newer contracts use higher base prices depending on market conditions at the time of negotiation.