Guide
How to calculate a fuel surcharge
A fuel surcharge moves the cost of diesel above an agreed baseline from the carrier to the shipper. It’s priced off the weekly DOE diesel price and paid either per mile or as a percent of linehaul.
The standard per-mile formula
Surcharge per mile = (current DOE price − base price) ÷ MPG
The base price is the diesel price already built into the linehaul (often somewhere around $1.20–$1.25 per gallon in older contracts). MPG is the fuel economy the contract assumes for the truck, commonly 5 to 6.5.
Worked example (this week)
This week’s U.S. average is $6.382. With a $1.25 base and 6 MPG: ($6.382 − $1.250) ÷ 6 = $0.855 per mile. On a 500-mile load that’s $427.50 of fuel surcharge.
Matrices instead of a formula
Many shippers and brokers publish a fuel surcharge matrix: a table of DOE price bands, each with a surcharge. You find this week’s DOE price in the table and use that band’s surcharge. Matrices are often the formula above, rounded into bands.
Percent of linehaul
Common in drayage and some LTL. The matrix gives a percent (say 30%) and the surcharge is linehaul × percent. A $1,500 linehaul at 30% carries $450 of fuel.
Which DOE week?
Check the contract: the week of pickup, of delivery, or the price published before the load. Regional (PADD) prices are sometimes used instead of the U.S. average.