{
  "slug": "fuel-surcharge-local-route",
  "title": "Fuel Surcharge for Local Routes Calculator",
  "heading": "Fuel Surcharge Calculator for Local Service Routes",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/fuel-surcharge-local-route",
  "summary": "Build a fair fuel surcharge that adjusts automatically as gas prices move.",
  "description": "When fuel prices spike, flat-rate route pricing quietly loses margin every day until you renegotiate contracts, which can take months. This calculator builds an indexed fuel surcharge tied to a baseline gas price so your pricing adjusts automatically as fuel costs change, protecting margin without needing to renegotiate every customer relationship every time prices move.",
  "formula": "Surcharge % = ((current fuel price − baseline fuel price) ÷ baseline fuel price) × sensitivity factor. Surcharge $ = base job price × surcharge %.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=fuel-surcharge-local-route",
  "inputs": [
    {
      "id": "baselinePrice",
      "label": "Baseline fuel price (built into your rates)",
      "kind": "number",
      "hint": null,
      "default": 3.2,
      "unit": "$/gal",
      "min": 1,
      "max": null
    },
    {
      "id": "currentPrice",
      "label": "Current fuel price",
      "kind": "number",
      "hint": null,
      "default": 3.85,
      "unit": "$/gal",
      "min": 1,
      "max": null
    },
    {
      "id": "sensitivity",
      "label": "Fuel cost sensitivity of your routes",
      "kind": "number",
      "hint": "Share of the fuel price swing passed through as surcharge",
      "default": 60,
      "unit": "%",
      "min": 5,
      "max": 100
    },
    {
      "id": "jobPrice",
      "label": "Average job / stop price",
      "kind": "number",
      "hint": null,
      "default": 65,
      "unit": "$",
      "min": 5,
      "max": null
    },
    {
      "id": "monthlyStops",
      "label": "Monthly stops (whole route)",
      "kind": "number",
      "hint": null,
      "default": 300,
      "unit": null,
      "min": 1,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "surchargePct",
      "label": "Recommended surcharge",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "surchargePerStop",
      "label": "Surcharge per stop",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthlyRecovery",
      "label": "Monthly surcharge revenue recovered",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Baseline fuel price (built into your rates): 3.2 $/gal",
      "Current fuel price: 3.85 $/gal",
      "Fuel cost sensitivity of your routes: 60 %",
      "Average job / stop price: 65 $",
      "Monthly stops (whole route): 300"
    ],
    "outputs": [
      "Recommended surcharge: 12.2%",
      "Surcharge per stop: $7.92",
      "Monthly surcharge revenue recovered: $2,377"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter baseline fuel price (built into your rates) ($/gal).",
      "Enter current fuel price ($/gal).",
      "Enter fuel cost sensitivity of your routes (%) — Share of the fuel price swing passed through as surcharge.",
      "Enter average job / stop price ($).",
      "Enter monthly stops (whole route).",
      "Read your recommended surcharge on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "baselinePrice": 1.92,
        "currentPrice": 2.31,
        "sensitivity": 35,
        "jobPrice": 40,
        "monthlyStops": 180
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "baselinePrice": 3.2,
        "currentPrice": 3.85,
        "sensitivity": 60,
        "jobPrice": 65,
        "monthlyStops": 300
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "baselinePrice": 5.120000000000001,
        "currentPrice": 6.16,
        "sensitivity": 95,
        "jobPrice": 105,
        "monthlyStops": 480
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What sensitivity factor should I use?",
      "a": "Sensitivity represents how much of a fuel price move actually affects your cost structure. Routes with tight, dense stops where fuel is a small share of job cost might use 30-40% sensitivity, while long rural routes or heavy trucks (moving trucks, dump trucks) with high fuel burn should use 60-80%. Track actual fuel cost as a percentage of revenue over a quarter to calibrate this precisely."
    },
    {
      "q": "How should I communicate a fuel surcharge to customers?",
      "a": "Put the surcharge formula in the service agreement upfront, ideally tied to a public index like the EIA weekly retail gas price average, and specify it will be reviewed monthly or quarterly. Customers accept fuel surcharges far better when they're transparent, tied to a public benchmark, and can also go down when fuel prices fall, rather than feeling like a hidden price increase."
    },
    {
      "q": "Should the surcharge be a flat fee or a percentage?",
      "a": "A percentage of job price scales more fairly across route types, since a bigger job or longer stop typically also means more fuel burned getting there and running equipment. A flat per-stop surcharge is simpler to communicate but under-recovers on your largest jobs and over-charges your smallest ones."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/route-density-profit",
    "https://www.revenuelab.fyi/toolbox/lawn-route-stops-per-day"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Fuel Surcharge for Local Routes Calculator (https://www.revenuelab.fyi/toolbox/fuel-surcharge-local-route)"
}