Trucking companies have to deal with fluctuating fuel prices that can affect their profits. To help offset these costs, they use a fuel surcharge, which is an additional fee that is added to the invoice. The fuel surcharge is calculated based on several factors, and in this article, we will explain how it works.

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## What is a Fuel Surcharge?

A fuel surcharge is a fee that is added to the base rate of a shipment to cover the cost of fuel. The amount of the surcharge varies depending on the price of fuel and the distance of the shipment. The surcharge is calculated as a percentage of the base rate and is typically adjusted on a weekly basis.

### How is the Fuel Surcharge Calculated?

The fuel surcharge is calculated using a formula that takes into account the average price of diesel fuel and the miles per gallon (MPG) of the truck. The formula is:

[(Current Fuel Price – Base Fuel Price) / Base Fuel Price] x MPG x Base Rate = Fuel SurchargeThe current fuel price is the price that is currently being charged for diesel fuel. The base fuel price is the price that was used to calculate the base rate of the shipment. The MPG of the truck is the number of miles that the truck can travel on one gallon of fuel. The base rate is the rate that was agreed upon for the shipment.

#### Example:

Let’s say the current fuel price is $3.00 per gallon, the base fuel price is $2.50 per gallon, the MPG of the truck is 6, and the base rate is $1,000. Using the formula above, the fuel surcharge would be:

[(3.00 – 2.50) / 2.50] x 6 x 1,000 = $240##### Factors that Affect the Fuel Surcharge

The fuel surcharge is affected by several factors, including:

- The price of fuel
- The MPG of the truck
- The distance of the shipment
- The weight of the shipment
- The type of shipment

Each of these factors can have a significant impact on the fuel surcharge, so it’s important to take them into account when calculating the fee.

##### Conclusion

Calculating the fuel surcharge is an important part of running a trucking company. By using the formula above and taking into account the various factors that can affect the fee, you can ensure that you are charging a fair and accurate amount. If you have any questions about calculating the fuel surcharge, be sure to consult with a financial expert or accountant.