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High Point GPS

Free tool

Fuel surcharge calculator

A fuel surcharge per mile is the current diesel price minus the base price in your contract, divided by the truck's miles per gallon. Enter those figures and the tool gives the surcharge per mile or kilometre, per load and as a share of your rate, then builds a surcharge table from your base price.

The price at which your contract's surcharge starts. It is a term of the agreement, and each customer can have a different one.

The price your contract points to, usually a weekly published average. The official sources are linked below.

The figure your contract uses, or what the truck really averages.

Optional: the length of one trip, to get the surcharge for that load.

Optional: your rate before fuel, to show the surcharge as a percentage of it.

Fuel surcharge per mile

n/a

Multiply by the distance billed to get the surcharge on an invoice. The price date and the rounding are whatever your contract says.

Surcharge for this load
n/a
Share of the linehaul rate
n/a

No fuel prices, base prices or fuel economy figures are built in. Diesel changes every week, and the base price and fuel economy are terms you agree with each customer, so the tool uses yours.

Your fuel surcharge table

Each row is a band of fuel prices starting at your base price, with the surcharge per mile or kilometre for that band. The row holding your current price is highlighted. Print it or copy it into a rate sheet.

Enter a base price and a fuel economy figure above to build the table.

Each row uses the lowest price in its band. If your contract uses another point in the band or rounds differently, follow the contract.

How the surcharge is worked out

  1. Take the gap between the current fuel price and the base price. That gap is the extra cost per gallon or litre the surcharge is meant to cover, and below the base there is nothing to cover.

  2. Divide by fuel economy. In miles, the gap divided by miles per gallon gives the surcharge per mile. In metric, multiply the gap per litre by litres per 100 km and divide by 100 to get the surcharge per kilometre.

  3. Apply it to the distance. The surcharge per mile times the miles billed gives the amount on the invoice. Divide the per mile figure by your linehaul rate and you have the percentage version some shippers prefer.

Where to find the current diesel price

Use the price series your contract names, on the date it names. These are the official public sources in Canada and the United States.

Put each truck's real fuel economy in the formula

The surcharge is divided by fuel economy, so that figure matters as much as the price. A guessed miles per gallon that is too high undercharges on every load, one that is too low overcharges, and a fleet with mixed trucks rarely has one figure that fits them all.

The GO10 GPS tracking device reads engine data and GPS distance, and the High Point GPS platform turns them into fuel usage and fuel economy reports for each vehicle (on many vehicles the data comes straight from the engine, though it varies by vehicle type). That gives you a measured figure for each truck to put in this calculator or in your next contract, along with idle time and a real cost per mile.

Fuel management and idle reduction →The GO10 GPS tracking device →

Fuel surcharge questions

How do you calculate a fuel surcharge per mile?
Subtract the base fuel price in your contract from the current price, then divide by the truck's fuel economy in miles per gallon. The result is the surcharge per mile; multiply it by the miles billed for the load. In metric, multiply the price gap per litre by litres per 100 km and divide by 100 to get the surcharge per kilometre.
What base fuel price should I use?
Use the one written in your agreement with the shipper or broker. The base price is a term of that agreement, and each customer can have a different one. This tool suggests none, because a figure printed here would turn into a number someone negotiates from without knowing where it came from. Check the contract before you invoice.
Where do I find this week's diesel price?
In the United States, the Energy Information Administration publishes the weekly on-highway diesel price in dollars per gallon, around 10 a.m. Eastern on Tuesday for Monday's price. In Canada, Natural Resources Canada publishes average retail diesel prices by city in cents per litre, taxes included. Use whichever series and date your contract names.
Which fuel economy figure should I use?
Use whatever your contract states, since that is what the customer agreed to pay against. When you set or renegotiate the figure, use what your trucks really average on that kind of freight rather than a round number. A GPS tracking device that reads engine data can report fuel economy per vehicle, which gives you a measured figure.
Is a fuel surcharge a percentage or an amount per mile?
Either, depending on the contract. The per mile method in this tool ties the surcharge to the fuel burned over the distance. A percentage applies a share to the linehaul rate instead. Enter your rate per mile or kilometre and the tool also shows the surcharge as a percentage of it, so you can compare the two ways of charging.
How does Quebec adjust bulk trucking rates for fuel?
Quebec's Ministère des Transports et de la Mobilité durable publishes a fuel adjustment percentage at the start of each month for the rates in its bulk trucking rate books. It is based on the previous month's average diesel pump price, from weekly prices published by the Régie de l'énergie, excluding GST and QST. It applies to those published rates only.

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