How shippers negotiate fuel surcharges
Index, peg, mpg, table steps, caps and applicability: the six levers in every fuel surcharge, and how to audit them.
EIA U.S. on-highway diesel: $6.127 (Nov 9, 2026). At a $1.25 peg and 6.5 mpg that is a $0.750 per-mile truckload surcharge.
In a year like 2026, the fuel surcharge can be one of the largest lines on a freight bill, yet it is often the least-negotiated line. Every surcharge, truckload, LTL or parcel, is built from the same few levers.
1. The index
Most contracts use EIA’s weekly U.S. on-highway diesel average; some use a regional EIA price, and air freight uses jet fuel. Make sure the index matches where your freight moves, and that the contract says which week’s figure applies and when it resets.
2. The peg (base price)
The diesel price already built into the linehaul rate. A higher peg means a lower surcharge at every fuel price. If your base rates were set when diesel was expensive, a low peg double-charges you for fuel.
3. The mpg assumption
Truckload formulas divide the price above the peg by an assumed miles per gallon. Some tables still assume 5 or 6 mpg, below what many modern tractors achieve. See what that costs in the surcharge audit calculator.
4. The table steps
LTL and parcel carriers publish percentage tables: for each price band of diesel, a percentage of the linehaul or transportation charge. The band width and the percentage per band decide how fast the surcharge climbs. Carriers change these tables on their own schedule; benchmark yours against the current published table.
5. Caps, collars and discounts
A cap limits the surcharge at high prices; a discount off the published table is common for larger shippers. Both are negotiable.
6. What the percentage applies to
Check whether the surcharge applies only to linehaul or also to accessorials such as residential delivery, liftgate or detention. Removing fuel from accessorials is often the quickest saving.
Audit what you are billed
Compare each invoice’s surcharge with the EIA price for the contract week and the agreed table. Errors in the index week, the table version or the charges it applies to are common.
Calculators: trucking fuel surcharge · surcharge audit. Background: how trucking surcharges work · parcel fuel surcharges.