Truckload Fuel Surcharge Calculator: Diesel Price, Peg and MPG
A fuel surcharge passes fuel price swings from the carrier to the shipper. The most common truckload formula is the fuel price above a base peg, divided by miles per gallon. This calculator applies it and shows the effect on your total.
Your numbers
Rate before fuel surcharge.
Use the index named in your contract, for example the weekly US national average.
Fuel price at which the base rate already covers fuel. Your contract states it.
Many schedules assume 5.5 to 6.5 MPG for tractor-trailers.
Your results
Carriers publish their own schedules (some use cents per mile steps, some use a percent table). Use this to check a quote against the contract formula.
Fuel surcharge vs diesel price
Sweeps Current diesel price from 2 to 6, holding your other inputs fixed.
Freight invoice audit against contract terms
Optional: discuss how carrier invoices could be checked automatically against contract fuel formulas.
Optional. The tool and every export work without this. No spam.
How to use the fuel surcharge calculator
Enter the base linehaul rate and loaded miles from the quote. Then enter the current diesel price from the index named in your contract, the peg price, and the MPG assumed in the schedule. The calculator shows the surcharge per mile, the total surcharge, the percent of linehaul and the all-in rate per mile. Use it to check an invoice or to model what a price move does to your annual freight budget.
The formula behind the schedule
The usual truckload formula is the surcharge per mile equals the current fuel price minus the peg, divided by MPG. Multiply by loaded miles for the load. If fuel is at or below the peg, the surcharge is zero. A 3.95 diesel price with a 1.20 peg and 6.5 MPG gives roughly 0.42 per mile. Some carriers update weekly, using a published national average with a lag, while LTL carriers more often use a percent-of-linehaul table that steps with price bands.
- Check which index and which week your contract uses.
- Confirm whether deadhead miles are included in the surcharge.
- Some contracts round to the nearest cent or in steps of 0.05 per gallon.
Reading the result and negotiating
The percent of linehaul shows how much of the bill is fuel, which can be large when diesel is expensive. The chart shows the linear relationship: every 10 cents on diesel adds roughly 1.5 cents per mile at 6.5 MPG. When negotiating, move the peg up or the MPG factor lower to reduce the surcharge, or ask for fuel to be built into the line haul. A peg set at a historically low price benefits the carrier.
Common mistakes
Treating the surcharge as a percent of the total when the contract defines it per mile is a common invoice error. Another is applying the surcharge to empty miles when the contract covers loaded miles only. Be careful when the index is a regional price rather than the national average, since the numbers can differ by 50 cents or more. Also confirm whether accessorials such as detention are subject to a surcharge, which most contracts exclude.
Frequently Asked Questions
What is a fuel surcharge peg?
The peg is the base fuel price built into the line haul rate. When diesel exceeds it, the shipper pays a surcharge for the difference. When diesel is at or below the peg there is no surcharge.
Which diesel index should I use?
Use the one named in your contract. In the US, the EIA weekly retail on-highway diesel average is the most common benchmark, either national or by PADD region. Using a different index will give a different surcharge.
Why is MPG a variable?
It converts a fuel price into a cost per mile. A lower assumed MPG means a higher surcharge per mile for the same diesel price. Negotiated schedules often assume 6 to 6.5 MPG.
Does this work for LTL?
Not directly. LTL carriers usually publish a percent-of-linehaul table that increases as diesel crosses bands. Use the percent result here only to compare with the table rate at the same fuel price.
Netray can compare carrier invoices to contract fuel formulas from your ERP freight data, so overcharges are flagged before payment.
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