Fuel Surcharge: How it Works, Calculate & Ways to Reduce It

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Fuel Surcharge Guide

Learn what a fuel surcharge is, why airlines charge it, and how it works for trucks, planes, and more. Plus, how to calculate it, avoid it, and get waivers (like with credit cards).

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What is Fuel Surcharge Exactly?

The fuel surcharge is an additional expense that you will see on your bill when fuel prices rise. It is not part of the base price and can be regarded as an additional charge to help businesses pay for higher-cost gasoline, diesel or aviation fuel.

Many industries are using it: airlines (for jet fuel), trucking companies (diesel), express delivery services, and even some ride-hailing apps. It varies according to the fuel price for a week or a month. Therefore, if the price of gasoline soars, surcharges will also increase. If they descend, it may shrink or disappear.

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Fuel Surcharge - Why It's Used & How it Works

Fuel Surcharge - Why It's Used & How it Works

Credit: Unsplash

Every time fuel prices rise, businesses are reluctant to change their main prices - this can confuse customers. This is where surcharges come into play: they enable companies to adjust quickly without disrupting the base interest rate.

Usually, the surcharge is linked to the fuel price index (such as the average price of diesel in the United States). If the fuel price exceeds a certain "line" (for example, $3.50 per gallon), the surcharge will take effect. The more expensive the fuel is, the higher the price will be. The cheaper the fuel, the lower the price.

Why companies use itHow it works day-to-day
To avoid raising base prices every time fuel spikesTied to real-time fuel costs (like EIA or local fuel reports)
To keep pricing predictable for customers (base rate stays steady)Added as a separate line on your bill (so you see it clearly)
To protect their profits when fuel gets expensiveChanges weekly or monthly—no fixed amount

How to Calculate Fuel Surcharge

How to Calculate Fuel Surcharge

Credit: Unsplash, Benjamin Wong

There is no universal formula, but most companies use a simple logic: (current fuel price - base fuel price) x fuel usage + adjustment. The "base price" is the fuel cost that the company considers "normal" (for example, $3.00 per gallon for diesel).

IndustryCalculation Example
Trucking(Current diesel price - $3.00) x miles driven x fuel efficiency (e.g., 6 mpg). If diesel is $4.50 and a truck drives 500 miles: (4.50 - 3.00) x (500/6) = $125 surcharge
Airlines(Current jet fuel price - $2.00/gallon) x gallons used per flight. A flight using 5,000 gallons with jet fuel at $3.50: (3.50 - 2.00) x 5,000 = $7,500 total surcharge (split across tickets)
ShippingFlat fee per pound + (fuel price over $3.00) x weight. A 100lb package with fuel at $3.50: $5 flat + (0.50 x 100) = $55 surcharge

What is Fuel Surcharge in Trucking

What is Fuel Surcharge in Trucking

Credit: Unsplash, Sander Yigin

In truck transportation, the fuel surcharge (FSC) is always related to diesel. Truck drivers consume a large amount of diesel. When the price of diesel rises, their profits will be eroded. So they added this surcharge to the freight bill to make up for the difference.

This is not random - most freight companies calculate based on the diesel index of the U.S. Energy Information Administration (EIA), which tracks the national average diesel price. Surcharges are usually calculated by mile. For instance, if the price of diesel reaches $4.00 per gallon, the operator may charge an additional fee of $0.10 per mile.

Key things to know about trucking fuel surcharges

  • Tied to the EIA’s weekly diesel price reports
  • Calculated per mile (varies by carrier, but often $0.05–$0.20 per mile)
  • Applies to both full truckloads (FTL) and smaller shipments (LTL)
  • Shows up as a separate line on your freight invoice
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Global Airline Fuel Surcharge Rules & Approx. Fees

Global Airline Fuel Surcharge Rules & Approx. Fees

Credit: Unsplash, Nicholas Jeffries

Disclaimer: The fuel surcharge is subject to real-time changes and is influenced by crude oil prices and government policies. Data as of July 2025. The actual cost is subject to the airline's official website or the order page on Trip.com. Child/infant discounts are subject to the airline's age regulations.

RegionAirlineShort-Haul (<800 km/500 mi)Long-Haul (>800 km/500 mi)Notes
North AmericaDeltaUnitedAmerican~$15-25 USD~$35-60 USDFees vary significantly by specific route, booking class, and competition. Often bundled into "Carrier-Imposed Fees".
EuropeLufthansa Group:• LufthansaAustrianSWISSBrussels Airlines€10-15 EUR€25-50+ EURFees generally higher than North American carriers for equivalent distances.
IAG Group:• British AirwaysIberiaAer Lingus£12-18 GBP£30-65+ GBPBA often has some of the highest surcharges, especially on long-haul.
Air France-KLM:• Air FranceKLM€10-15 EUR€25-45 EURSimilar to Lufthansa group levels.
Asia-PacificMainland Chinese:• Air China (CA)• China Eastern (MU)• China Southern (CZ)¥10 CNY (Free for Children/Disabled)¥20 CNY (¥10 for Children/Disabled)Mandated standard per Chinese regulations. Infants free
Singapore Airlines (SQ)~S$15-25 SGDS$45-100+ SGDHigh surcharges, especially on premium routes to Europe/US.
Qantas (QF)~A$20-30 AUDA$50-120+ AUDSignificant fees, particularly on long-haul international flights.
ANA (NH)JAL (JL)~¥1000-2000 JPY¥3000-7000+ JPYModerate compared to European giants, but still substantial.
Middle EastEmirates (EK)Qatar Airways (QR)Etihad (EY)~$15-25 USD$40-80+ USDFees can be high but are often partially offset by competitive base fares.

Key Points to note:

  • Distance is king. The primary factor is the distance range (for example, within 800 kilometers/over 800 kilometers, within 1,000 miles/over 1,000 miles, intercontinental). The longer the flight distance, the higher the cost.
  • For Infants/children/people with disabilities, the regulations vary. Generally, infants (under 2 years old, without a seat) do not need to pay the fuel surcharge. Children (aged 2 to 11) and eligible disabled passengers may only need to pay a lower fee or no fee at all on short-haul flights.
  • Bundling is common. Airlines, especially those in the West, often bundle fuel surcharges with other "airline surcharges" (such as security check fees). This makes it very difficult to see the exact fuel cost section in the flight ticket details.
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How to Avoid Fuel Surcharge?

You can’t always skip it, but these tips help reduce or avoid fuel surcharges:

  • Book when fuel prices are low. When fuel prices fall (for example, diesel prices in some areas are lower in winter), surcharges are relatively low.
  • Choose airlines with no or low surcharges. Some smaller freight companies or budget airlines skip surcharges by including fuel costs in the base price.
  • Loyal members of airlines or freight brokers under the Loyalty Program sometimes receive additional discounts.
  • For truck transportation, consolidating goods can reduce the surcharge per unit.

What is a Fuel Surcharge Waiver?

A fuel surcharge waiver is a benefit that lets you skip the surcharge. It’s common with credit cards, loyalty programs, or promotions—companies use it to attract customers.

Type of WaiverExamplesHow to Get It
Credit Card WaiversChase Sapphire Reserve waives some airline fuel surcharges on award ticketsSpend enough to earn the benefit (e.g., $4,000 annual spending)
Loyalty ProgramsDelta SkyMiles Diamond members get waived domestic flight fuel surchargesEarn elite status (e.g., 125,000 MQMs for Delta Diamond)
PromotionsTrucking brokers might offer "no FSC" for first-time shippersAsk about new customer deals
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FAQs about Fuel Surcharge

  • What is fuel surcharge?

    A fuel surcharge is an extra fee added to a bill when fuel prices go up. It’s not part of the main price—think of it as a little extra to help companies pay for more expensive gas, diesel, or jet fuel. You’ll see it on airline tickets, trucking shipments, or even delivery orders. It changes a lot: if fuel gets pricier, the surcharge goes up; if fuel gets cheaper, it might go down or disappear.
  • What is 1% fuel surcharge waive?

    A 1% fuel surcharge waive means you don’t have to pay 1% of the fuel surcharge that would normally be added. For example, if your total bill has a $10 fuel surcharge, a 1% waive would knock off $0.10, so you pay $9.90 instead. These waivers often come from credit cards or loyalty programs—they’re small, but add up if you deal with surcharges regularly.
  • What does a 30% fuel surcharge mean?

    A 30% fuel surcharge means you’re paying an extra 30% on top of the base cost, specifically to cover higher fuel prices. Let’s say the base price for a truck shipment is $100. A 30% surcharge would add $30, making your total $130. This percentage is usually tied to how much fuel costs have risen—if fuel is 30% more expensive than a company’s “normal” rate, they pass that 30% on as a surcharge.
  • Why do airlines charge fuel surcharge?

    Airlines charge fuel surcharges because jet fuel is one of their biggest costs—sometimes up to 30% of their expenses. When jet fuel prices spike, they can’t just raise ticket prices every week without confusing customers. So they add a surcharge instead. It lets them keep base ticket prices steady while covering the extra fuel cost. It also means if jet fuel gets cheaper, the surcharge drops, which is fairer than keeping high ticket prices.
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