OOIDA Foundation video details importance of a fuel surcharge

May 9, 2022

Land Line Staff

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The volatility of the diesel market, along with record prices, doesn’t appear to be going away anytime soon. The OOIDA Foundation has something worth considering.

According to the latest information from the Energy Information Administration, the national average price per gallon of diesel was $5.509 on May 2. That’s $2.367 higher than it was at the same time last year.

What’s more, the AAA website showed the highest national average price, $5.540 per gallon, was recorded on May 9.

Earlier this year, when diesel prices began reaching levels not seen in a decade, the OOIDA Foundation released educational information for drivers about fuel surcharges and why they are critical component of your business.

Carriers typically increase their fuel surcharge 1 cent for every 6-cent increase in diesel price above their established baseline, the Foundation website says.

Recently, the Foundation provided an update to its fuel surcharge offerings with the video below.

In times of economic uncertainty, it’s critical that owner-operators understand what a fuel surcharge is and how it can benefit them when the cost of diesel goes up, the Foundation’s video says.

What exactly a fuel surcharge is, how to calculate it and the advantages of using one were the main talking points of the Foundation video.

There is no rule, law or regulation mandating a fuel surcharge currently in place, but the Foundation website says that if you have not incorporated one into your operation, you need to do so, and now.

To access the latest fuel surcharge information or to use the fuel surcharge calculator, visit the OOIDA Foundation website. LL

TBS