A fuel surcharge passes rising diesel cost to the shipper. When the fuel price exceeds a base peg, the surcharge per mile is the overage divided by truck MPG — times miles for the load charge.
The example
$4.20 fuel, $2.50 peg, 6 MPG.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | (4.20−2.50)/6 | — |
| 3 | FSC/mile | → ~$0.283 |
The formula
The formula:
How it works
How it works:
- The overage = current fuel price − base peg, floored at zero by MAX.
- Divide by truck MPG for the surcharge per mile (cost of the extra fuel per mile).
- Multiply by miles for the load’s total fuel surcharge.
- Below the peg, the surcharge is zero — the floor matters.
FSC converts a per-gallon spike into a per-mile charge. The math is just unit conversion: dollars-over-peg per gallon, divided by miles-per-gallon, yields dollars per mile. A truck at 6 MPG feels fuel swings 50% harder than one at 9 MPG, which is why MPG is in the denominator. Pegs and schedules are set in the contract — the formula simply applies them.
Try it: interactive demo
Fuel price, base peg, MPG, miles.
Variations
Load fuel surcharge
Per mile × miles:
Stepped peg
Per $0.10 over:
Total linehaul + FSC
Full rate:
Pitfalls & errors
Floor at zero. No surcharge below the peg — MAX(…, 0).
MPG matters. Lower MPG means a higher surcharge per mile.
Contract peg. The base and schedule come from the agreement.
Practice workbook
Frequently asked questions
How do I calculate a fuel surcharge in Excel?
Why divide by MPG?
What if fuel is below the peg?
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