fuel surcharge

[rcashjr]

I see where most companies offer a fuel surcharge. What does that mean and or not mean. Is a flat rate, a percentage and does it do enough to off set the cost for fuel when it goes back up to 4-5 dollors a gallion.

 

[Dynamite 1]

the way fsc is figured differs from co. to co. some do a flat rate some do it based on percentage then some do it based on how much they can get the customer to pay. be aware that sometimes in the latter what is offered can change if the customer decides not to pay , generally this can vary from .01 to ? but it doesnt happen alot. you do not see this in a flat rate it is generally figured on a formula and changes week to week based on the national average for fuel. the formula for flat rate fsc is figured on natl. avg. dsl. price - 1.25 divided by fleet mpg. fleet mpg is usually 9 or 10 mpg. the 1.25 is what the eia says dsl. should cost us, but some co. use 1.20 or even a different figure. this is a ? you should ask and make sure you get it explained to you. so here is an example for you based on this week natl. avg. dsl. 2.652-1.25=1.402/9=15.57^=.16 fsc per mi. usually anything .4 or under is rounded down .5 is rounded up. on a flat rate fsc will generally cover 40% of fuel cost while the other programs usually cover more. but are not as consistent. ther are believers on both sides. i happen to like a flat rate. i feel it makes me more concious of fuel cost. the other methods can pay for the biggest part of your fuel at times but to me, what happens when you have been use to this and your co. changes policy or the amt of fsc. they are able to obtain changes drastically. but that is just my opinion and i am sure someone who is on the other program can tell you why they like it. last thing eia is the federal site for energy costs, they update it every tuesday. hope this helps. you can check them out @ eia.com