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Fuel surcharge

An extra per-mile amount added to a load's rate to help cover diesel when fuel prices climb.

A fuel surcharge is an extra amount added to a load’s pay to help cover the cost of diesel. The idea is that the base rate cannot chase the pump every week, so a surcharge floats on top of it, going up when fuel is expensive and easing when it drops.

Peg $1.20 Pump $3.60 $2.40 over the peg = $0.40 per mile base rate covers this surcharge covers the gap
The surcharge floats on the gap between the pegged diesel price and what the pump actually charges.

It is usually figured per mile, tied to a fuel price index. When diesel goes above a set price, the surcharge kicks in at so many cents per mile, and it climbs as the price climbs. On a long haul when fuel is high, the surcharge can be a real piece of what the load pays.

Do not confuse it with the IFTA fuel tax or the surcharge that a few states like Indiana, Kentucky, and Virginia charge. Those are taxes on the fuel you burn. A fuel surcharge is part of what the broker pays you, meant to offset the price at the pump. You can estimate what a trip actually costs in diesel with the fuel cost calculator.

Related: rate per mile, deadhead, IFTA.

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