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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteUse the fuel-surcharge formula in the customer agreement, rate confirmation, or applicable tariff—not a universal industry formula. For a mileage-based schedule that uses a diesel-price peg and an MPG divisor, calculate: surcharge per mile = (applicable diesel price − contract base price) ÷ contract MPG, then multiply by the agreement’s billable miles. The contract also determines which diesel-price series and week to use, when the surcharge takes effect, how to round it, and which charges it applies to. The U.S. Energy Information Administration (EIA) says these surcharges are negotiated privately and that it does not calculate, assess, or regulate them (EIA fuel-surcharge FAQ).
What a trucking fuel surcharge is—and what determines it
A fuel surcharge is a contract-defined charge intended to account for changes in fuel prices. For a particular trucking job, its amount is not determined by one government-mandated formula. The controlling terms are usually in the customer agreement, rate confirmation, or applicable tariff. Those terms can specify the price reference, base price, MPG divisor or schedule, mileage basis, effective dates, rounding, and the services or charges subject to the surcharge.
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The EIA publishes diesel-price data that parties may use as an index; it does not prescribe how a carrier or shipper must turn that data into a charge. Its diesel fuel surcharge overview explains the relationship between diesel prices and surcharges, while its FAQ states that the surcharge terms are privately negotiated. A formula found in one carrier’s schedule or a government tariff therefore should not be assumed to apply to a different job.
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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Start with the document governing the load. If the rate confirmation refers to a customer agreement or tariff, read the relevant surcharge provision in that document too. A carrier’s publicly posted schedule may be informative, but it does not automatically replace the terms agreed for a specific customer or shipment.
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This distinction matters whether you are a carrier preparing a quote or invoice, a shipper checking a bill, or an operations employee entering a rate into a system. An index supplies a reference price; it does not, by itself, tell you the base price, MPG, mileage, adjustment period, or charge scope. Two parties can use the same published diesel figure and still reach different surcharge amounts because their agreements define different calculations.
Calculate a mileage-based surcharge
For a schedule that uses a diesel-price difference and an MPG divisor, the arithmetic is:
Surcharge per mile = (applicable diesel price per gallon − contract base price per gallon) ÷ contract MPG
Job surcharge = surcharge per mile × contract billable miles
Use the exact inputs and rules in the governing terms. The formula is a calculation pattern, not a universal standard. If the contract instead specifies a stepped table, bracket, percentage, cap, floor, or different method, apply that method rather than substituting this equation.
The units help check the arithmetic: subtracting one price per gallon from another leaves a dollar-per-gallon difference; dividing by miles per gallon converts that difference to a dollar-per-mile amount. Multiplying by eligible miles then gives a dollar amount for the job. Keep the formula’s order straight, too: calculate the price difference first, divide by the specified MPG, then multiply by the contract-defined miles, subject to any schedule rules about rounding or thresholds.
Hypothetical arithmetic example
Suppose a hypothetical agreement—not an industry standard—sets a $3.00-per-gallon base, a 6.5 MPG divisor, uses an applicable diesel price of $4.00 per gallon, and defines the job as 500 billable miles. The price difference is $1.00 per gallon. Dividing by 6.5 gives approximately $0.1538 per mile; multiplying by 500 gives approximately $76.92 before any contract-specific rounding or other adjustments.
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This example demonstrates only the arithmetic. It does not establish a typical base price, MPG, diesel price, mileage rule, or surcharge amount. A real invoice must use the values and rounding rules specified by the applicable agreement and the correct diesel-price observation.
Find the right inputs before doing the math
1. Identify the governing schedule
Locate the surcharge provision in the customer agreement, rate confirmation, or tariff, including any document incorporated by reference. Record the schedule version or effective period that applies to the load. If documents appear to conflict, do not silently choose a preferred number: determine which terms govern that shipment before calculating or billing.
Look for the specific details below. Do not assume a base price, MPG, index region, mileage definition, or surcharge floor simply because another customer or carrier uses one.
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- Price reference: the named diesel index or carrier schedule.
- Geography: national, regional, or another specified series.
- Observation week and effective date: which published value applies and when the schedule change begins.
- Calculation method: price-differential formula, table, bracket, percentage, or other specified method.
- Base price and MPG divisor: if the schedule uses them.
- Mileage basis: the miles eligible for the charge, as defined in the agreement.
- Adjustments and scope: floor, cap, rounding, minimum, and the services or line items to which the charge applies.
Read the provision as a whole rather than extracting one number from a schedule. A price table may only make sense alongside its stated index, effective period, and billing basis. Likewise, a rate confirmation may give a job-level rate while pointing to a separate agreement for surcharge mechanics. Keep track of both the load-specific document and any referenced schedule.
2. Select the diesel price and observation week
If the agreement names EIA’s weekly retail on-highway diesel price, use the specified EIA series and the observation week or effective date the contract calls for. EIA says it updates U.S. on-highway diesel prices every Tuesday, but holiday timing and the currently applicable series should be checked on its current diesel-surcharge page rather than inferred from an old schedule. Do not substitute a live price, a different region, or a different week merely because it is easier to find.
The agreement may use an index other than EIA’s, or a carrier-published schedule rather than a direct price figure. In that case, follow the named reference and its effective period. Keep the published value or schedule that you actually used so the calculation can be reproduced later.
Pay attention to the difference between an observation date and an effective date. The observation identifies the price data or schedule value; the effective date tells you when the contract says the resulting adjustment applies. A schedule can therefore call for a particular observation week to govern a later billing period. Do not assume that the diesel price on the day a load is picked up is automatically the right input. The contract’s timing rule decides.
Because EIA updates prices weekly, an older value can become inappropriate for a later calculation even if it was correct for an earlier one. Conversely, using the newest available value may also be wrong if the agreement specifies a different observation week. Record the exact week and series, not simply “EIA diesel,” so someone reviewing the invoice can identify which figure was used.
3. Confirm the contract’s base price and divisor
For the price-differential formula, subtract the stated base price per gallon from the applicable diesel price, then divide by the contract’s MPG divisor. Do not replace either figure with a personal estimate of fuel costs or a presumed “average” MPG. The sources cited here do not establish an industry-wide base price or MPG benchmark.
Check units before calculating: both prices must be expressed in dollars per gallon, and the divisor must be the MPG value specified by the schedule. If the schedule gives a table instead of a divisor, use the table; do not reverse-engineer a different divisor unless the agreement expressly permits it.
Also check how the schedule treats a price at or below the base. The cited official materials do not establish a universal zero floor or other minimum. One agreement may describe a floor, while another may specify different handling. Apply only the threshold or adjustment actually stated in the governing terms; do not assume that a negative result should be billed, waived, or reset to zero without checking the agreement.
4. Use the agreement’s billable miles
Multiply the per-mile amount by the mileage basis defined in the contract. That may be called billable miles, but the label alone does not establish whether the schedule uses loaded miles, all miles, a prescribed routing distance, or another basis. The actual rule belongs to the governing terms. Do not automatically use odometer miles, dispatch miles, or loaded miles without checking that definition.
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For example, knowing the trip’s loaded distance is not enough to decide the multiplier if the contract specifies another method of establishing billable miles. Conversely, do not add empty or repositioning miles merely because they were driven if the agreement does not include them. Identify the contractual mileage measure first, then use that same measure consistently in the calculation and supporting records.
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If a rate confirmation lists miles but does not explain whether those miles determine the surcharge, check the incorporated agreement or tariff. Where the governing text is silent or unclear, resolve the mileage basis with the contracting party instead of treating a familiar dispatch practice as a universal rule.
5. Apply the remaining schedule rules
Follow the stated rounding method, any zero floor or other minimum, cap, start date, and charge scope. For example, the contract may state whether to round the per-mile rate before multiplying or to round only the final amount. Those choices can change the result. No universal rounding, floor, cap, or line-item rule is established by the cited sources.
Check whether the surcharge is assessed once per load, calculated per eligible mile, or expressed as a percentage of specified charges. Also confirm whether a percentage applies to linehaul alone or to other named services or line items. The format of the number does not answer that question: the agreement must define the basis. Avoid applying a surcharge to every invoice line—or excluding a line—based on assumption alone.
Worked official example: a specific GSA household-goods tariff
A General Services Administration household-goods rate filing, modified October 3, 2023, provides a specific example: total billable miles divided by 5.0 MPG, multiplied by the DOE national average diesel price above a $2.999-per-gallon base. Expressed as a formula, that filing’s method is:
Billable miles ÷ 5.0 MPG × (DOE national diesel price − $2.999 per gallon)
The filing defines the diesel price and surcharge period for its own tariff. The 5.0 MPG divisor and $2.999 base are tariff-specific values, not standard inputs for other trucking jobs. See the GSA household-goods rate filing for its terms and example.
This example is useful for understanding the structure of a price-differential method: the mileage is divided by the specified MPG and multiplied by the amount by which the named diesel price exceeds the base. It does not authorize using those same inputs for a commercial truckload, another household-goods tariff, or a private customer agreement. The filing’s own price source, mileage definition, and surcharge period remain part of its method.
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When the schedule uses a table or percentage instead
Not every surcharge is calculated by subtracting a base price and dividing by MPG. Some schedules provide a stepped table or bracket; others express the surcharge as a percentage of a defined charge. In those cases, the table’s price range, effective date, percentage basis, and included charges matter. A percentage cannot be applied correctly until you know which amount the contract says to multiply it by.
With a stepped schedule, first identify the price observation and period, then locate the bracket that applies under the schedule’s terms. Use the listed rate or percentage for that bracket rather than interpolating between steps or converting the bracket into a price-differential formula. The agreement may also specify how the bracket relates to load dates or invoice periods; follow that timing rule rather than choosing a date that produces a preferred result.
FedEx Freight publishes its own weekly LTL and TL surcharge schedule and says the customer agreement is the final authority for calculation details and adjustment frequency. Its schedule is a carrier-specific example, not a substitute for terms governing another load. Consult the FedEx Freight weekly fuel-surcharge page only when that carrier’s schedule is relevant to the job. FedEx states: “Notwithstanding any information provided herein, the customer agreement is the final authority for all matters related to the customer’s fuel surcharge calculation and the frequency of the calculation adjustment.”
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For two schedules you are considering, compare their inputs and rules side by side rather than comparing headline percentages alone:
| What to compare | Why it changes the result |
|---|---|
| Diesel index and geography | Different named series or regions may supply different reference prices. |
| Observation week and effective date | The price observation used and the period when the adjustment applies determine which schedule value governs. |
| Base price and MPG divisor, or table steps | These define how a price change is converted into a per-mile amount or bracket. |
| Mileage definition | The eligible miles determine how many times a per-mile charge is applied. |
| Calculation basis | A per-mile, per-load, or percentage method requires different arithmetic and may apply to different amounts. |
| Rounding, floor, cap, and minimum | These terms can change the final billed amount even when the underlying price is the same. |
| Included services or line items | The contract determines whether the surcharge applies to linehaul or other specified charges. |
There is no single “best” schedule established by the cited official materials. A useful comparison is one that shows the actual terms, price reference, and effective period for each agreement—not a carrier’s rate transplanted into a different contract. If you are comparing two proposed schedules, compare what a load would be charged under each using the same stated price observation, mileage, and charge basis. Keep other assumptions visible; a headline percentage on its own is not an apples-to-apples comparison.
Keep the calculation auditable
Fuel prices and schedule values change, so retain the exact reference and terms used for each load. A quote or invoice should make it possible for both parties to reproduce the amount without guessing which week, mileage, or schedule was selected.
- Record the governing agreement, tariff, rate confirmation, or schedule version and the relevant effective period.
- Note the named diesel-price series, geography, observation week, and published price—or the applicable table bracket or percentage.
- Show the contract base price and MPG divisor when using the mileage-based price-differential method.
- State the contract-defined billable miles and the source or calculation used to determine them if the agreement calls for that documentation.
- Show the calculation, contract-required rounding, any floor or cap, and which charges are included.
For a table or percentage schedule, preserve the actual schedule entry and its effective period in place of inputs that do not apply. The point is to document the method the parties agreed to, not to make every surcharge look like the same formula.
A concise invoice explanation can identify the method and inputs without reproducing every contract clause. For example, it can name the applicable schedule or tariff, the price series and week, the billable miles or percentage basis, and the resulting calculation. Retain the underlying schedule and agreement as supporting records. If the amount is challenged later, those details help distinguish a math error from a disagreement about which contractual rule applies.
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Using a familiar formula instead of the contract formula
Problem: A shipper or carrier applies a price-differential formula even though the governing schedule supplies a percentage or bracket. Fix: Return to the applicable agreement and use the stated method. EIA’s role is to publish data, not to establish a universal surcharge calculation.
Using the wrong price, region, or week
Problem: The calculation uses a current price, a national series, or a recent observation even though the contract specifies a different series, geography, or week. Fix: Verify the exact reference and effective-date rule in the agreement, then check the publication or schedule for that period.
Assuming a standard base price or MPG
Problem: An input is borrowed from another customer, carrier, or tariff. Fix: Use only the base and divisor specified for this job. The GSA filing’s 5.0 MPG and $2.999-per-gallon base are examples from one household-goods tariff, not defaults.
Applying the rate to the wrong miles
Problem: Loaded miles, route-planning miles, or total trip miles are substituted without confirming the contract’s mileage rule. Fix: Identify the contract-defined eligible miles before multiplying by the per-mile rate. If the rate confirmation is silent or unclear, resolve the applicable basis with the contracting party rather than assuming one.
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Problem: A percentage or per-mile schedule is applied to every invoice line—or only to linehaul—without contract support. Fix: Check the schedule’s scope and percentage basis. Do not infer whether accessorials, other services, or separate charges are included.
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Rounding too early or ignoring a threshold
Problem: A per-mile value is rounded before multiplication, or a floor, cap, minimum, or effective date is overlooked. Fix: Apply the sequence and thresholds stated in the schedule. If no rule is stated, do not present a self-selected convention as contract-mandated.
Treating a carrier schedule as automatically binding
Problem: Someone copies a carrier’s posted surcharge percentage or table into a different customer’s calculation without confirming that it governs the shipment. Fix: Check the customer agreement and rate confirmation. A published carrier schedule can be relevant, but its terms do not automatically become the terms of another job.
Using an old observation or schedule version
Problem: A value from an earlier week or an expired schedule is reused for a new load because it is already saved in a spreadsheet or billing system. Fix: Verify the applicable observation week and effective period for the job, then preserve that version with the calculation. Weekly index data and carrier schedule entries can change.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsWhy a historical proposal is not a current universal rule
A 2000 House Committee on Transportation and Infrastructure report discussed proposed statutory mechanisms for truckload fuel surcharges. It is legislative history, not a reliable statement of a current, universally applicable calculation rule. For a job today, use the actual agreement or tariff rather than treating an old proposal as a governing formula. The historical document is available in House Report 106-865.
Frequently Asked Questions
How do I calculate a fuel surcharge for a trucking job?
First identify the agreement, rate confirmation, or tariff that governs the load. If it specifies a mileage-based price-differential method, subtract the contract base diesel price from the applicable diesel price, divide by the contract MPG, and multiply by contract-defined billable miles. If it specifies a table or percentage, use that method and its own rules instead.
What diesel price and week should I use?
Use the diesel-price series, geography, observation week, and effective-date rule named in the governing terms. EIA updates U.S. on-highway diesel prices weekly, generally on Tuesday, but the contract determines which observation applies. Check EIA’s current diesel-surcharge page for publication timing and the relevant series rather than assuming the newest value is correct.
What base fuel price and MPG do I put in the formula?
Use the base price and MPG divisor stated in the applicable agreement or tariff. There is no universal base price or MPG established for trucking jobs. The GSA household-goods filing’s $2.999-per-gallon base and 5.0 MPG divisor are specific to that filing, not default inputs.
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Do I calculate the surcharge on loaded miles, billable miles, or the whole linehaul?
Use the mileage definition and charge basis in the governing terms. The phrase “billable miles” does not, by itself, establish whether loaded miles, all miles, or another prescribed distance counts. For a percentage schedule, confirm which charges the percentage applies to; do not assume it applies to all linehaul or every invoice item.
Is a carrier’s surcharge table part of my rate agreement?
Not automatically. Check whether the customer agreement, rate confirmation, or tariff incorporates that carrier schedule and which version or effective period applies. FedEx Freight likewise states that its customer agreement is the final authority for calculation details and adjustment frequency.
Does EIA set or regulate trucking fuel-surcharge rates?
No. EIA publishes diesel-price data that parties may use as an index, but it says fuel surcharges are negotiated privately and that EIA does not calculate, assess, or regulate them.
Can I use the diesel price from the day the truck picks up the load?
Only if the governing terms call for that price or timing rule. A contract may specify a particular observation week and a separate effective period, so the pickup-day price is not automatically the correct input.
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The Bottom Line
Bottom line: There is no universal trucking fuel-surcharge formula. Follow the load’s agreement, rate confirmation, or tariff to identify the diesel index and week, base price, MPG divisor or table, billable miles, effective date, rounding, and charge scope. For a price-differential method, subtract the base from the applicable diesel price, divide by the specified MPG, and multiply by eligible miles. Keep the schedule and inputs with the quote or invoice so the result can be reproduced.
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