A fuel surcharge gives carriers and shippers a way to account for changing diesel prices without renegotiating the transportation rate every time fuel moves. That separation is why rate confirmations often show linehaul and fuel as different line items rather than one combined number.

Why Fuel Surcharges Became Part of Freight Pricing

As diesel prices became more volatile, carriers needed a way to recover changing fuel costs without constantly rewriting transportation contracts. Separating fuel costs from the linehaul rate allowed freight prices to adjust as diesel prices changed while keeping the underlying transportation rate consistent. When diesel prices fall, the surcharge can fall with them while the negotiated linehaul rate generally stays the same.

Many carriers reference the weekly national on-highway diesel price published by the U.S. Energy Information Administration when building their fuel surcharge schedules. The EIA provides the price data, but it does not establish or regulate the formulas companies use. Each carrier, shipper, or broker agreement can set its own method.

There Is No Industry-Wide Formula

Fuel surcharge calculations usually rely on a few basic inputs, but the details vary from one agreement to another. Common factors include a baseline diesel price, an assumed fuel economy, and the current diesel price.

The baseline, often called the peg, represents the amount of fuel cost already built into the linehaul rate. Once the current diesel price rises above that baseline, the surcharge typically begins to increase according to the formula in the contract.

Fuel economy assumptions matter too. A contract that assumes 6.5 mpg will produce a different per-mile surcharge than one using 7.5 mpg because the first assumes the truck burns more fuel over the same distance. That is one reason two loads moving the same mileage can show different fuel surcharge amounts.

The Linehaul Rate and Fuel Surcharge Need to Be Read Together

Looking at the fuel surcharge by itself can create a misleading picture of what a load actually pays. One shipment may carry a larger surcharge but a weaker linehaul rate, while another may show the opposite and still produce better total revenue.

A better comparison starts with the entire rate confirmation. Total pay, loaded miles, deadhead, detention terms, and expected fuel consumption all matter more than one line item.

For example, two 600-mile loads could pay the same gross amount even if one has a larger surcharge. If that load also requires 150 miles of unpaid deadhead while the other requires only 20, the second load may still produce the better return despite the smaller FSC.

Mileage Definitions Matter

Not every fuel surcharge program uses the same mileage basis. Some agreements apply the surcharge only to loaded miles, while others use dispatched miles or another method defined in the contract.

That distinction matters because deadhead can quickly reduce the value of the surcharge. If the FSC applies only while freight is on the truck, fuel burned while repositioning to the pickup is still coming out of the owner-operator’s pocket.

This is why the mileage language in a lease, rate confirmation, or shipper agreement deserves just as much attention as the cents-per-mile surcharge itself.

Fuel Surcharges Do Not Cover Every Fuel Expense

A fuel surcharge is designed to offset changes in diesel cost, not reimburse every gallon burned under every condition. Traffic congestion, extended idling, mountain grades, weather, lower-than-expected fuel economy, and unpaid deadhead can all increase actual fuel expense beyond the assumptions built into the formula.

Timing also matters. Many surcharge schedules are updated weekly using EIA diesel data, while retail pump prices can change daily. When fuel prices move quickly, the surcharge may temporarily lag what owner-operators are paying at the pump.

That gap does not necessarily mean the formula is wrong. It means the schedule is based on a published index and update cycle rather than real-time fuel purchases.

Rate Confirmations Deserve a Closer Look

The way a load is presented can make two offers look more similar than they really are. Some rate confirmations separate linehaul and FSC, while others combine everything into one total.

Before accepting a load, it helps to know whether the surcharge is itemized, what mileage it applies to, how much deadhead is involved, and whether detention or layover pay is available. Those details can change the economics of the trip far more than a slightly higher surcharge.

Owner-operators leased to a carrier should also review the lease agreement to see how fuel surcharge revenue is passed through. The percentage or structure is not automatically the same from one carrier to another.

Fuel Surcharge Is Only One Part of Profitability

The strongest load is not always the one with the highest FSC. Profitability comes from the combination of total revenue, total miles, fuel efficiency, deadhead, wait time, and operating costs.

Treating the fuel surcharge as one piece of the rate instead of a stand-alone measure gives owner-operators a clearer picture of what a load is actually worth. That approach also makes it easier to compare freight on equal terms instead of being distracted by a large surcharge number that may not tell the full story.

Frequently Asked Questions

What is a fuel surcharge in trucking?

A fuel surcharge is an additional amount added to the linehaul rate to help account for changes in diesel prices. Many companies base their calculations on weekly diesel price data published by the U.S. Energy Information Administration.

Who decides how a fuel surcharge is calculated?

The formula is set by agreement between the parties involved, such as the shipper, carrier, or broker. There is no single federally mandated formula.

What does the fuel surcharge peg mean?

The peg is the baseline diesel price assumed to be covered by the linehaul rate. Once current diesel prices rise above that level, the surcharge typically increases according to the contract formula.

Does a fuel surcharge always pay on deadhead miles?

No. Some programs pay only on loaded miles, while others use dispatched miles or another mileage basis. The agreement should define how mileage is calculated.

Why can two similar loads have different fuel surcharges?

Different contracts may use different peg prices, fuel economy assumptions, mileage methods, and update schedules.

Why does the surcharge sometimes lag behind pump prices?

Many schedules are updated weekly using published diesel averages, while retail fuel prices can change every day. That timing difference can create a short-term gap.

Should owner-operators compare FSC or total load revenue?

Total load revenue is more useful because linehaul, fuel surcharge, deadhead, detention, and operating costs all affect the final result.

The TDUSA editorial team creates practical, driver-focused content covering trucking news, industry updates, safety, regulations, and career information for professional truck drivers across the United States. Each article is built to reflect real-world experience, industry developments, and information drivers can use on and off the road.

Last Updated: August 28, 2026

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Key Highlights

Weekly Trends

For the third consecutive week, the national average price for diesel has declined, accumulating a total drop of 9.7 cents over this period.

Year-Over-Year Comparison

Diesel now costs 35.9 cents less per gallon compared to the same time last year.

Regional Price Trends

Out of the ten regions in the EIA’s weekly survey, nine saw a decrease in diesel prices. The reductions ranged from 4.3 cents in California to a marginal drop of half a cent in the Midwest. The Gulf Coast region, however, saw a slight uptick of seven-tenths of a cent.

Gasoline Price Update

The national average price for gasoline saw a minor increase of 1.3 cents, bringing it to $3.484 per gallon. Despite this rise, gasoline is still 27.3 cents cheaper than it was at this time last year.

Analysis

This marks the third week in a row that diesel prices have decreased, with a total reduction of 9.7 cents. Compared to the same period last year, the national average price has fallen by 35.9 cents.

Regional Price Dynamics

East Coast (PADD1)

The East Coast region experienced a decrease of 2.8 cents, bringing the average price to $3.844 per gallon. This is 30.9 cents lower than the same period last year.

New England (PADD1A)

In New England, prices dropped slightly by 1.2 cents to $4.089 per gallon, which is 7.2 cents less than last year.

Central Atlantic (PADD1B)

The Central Atlantic region saw a more notable decline of 3.3 cents, with the average price now at $4.028 per gallon, reflecting a year-over-year decrease of 26.3 cents.

Lower Atlantic (PADD1C)

Diesel prices in the Lower Atlantic fell by 2.7 cents to $3.751 per gallon, a decrease of 35 cents compared to last year.

Midwest (PADD2)

The Midwest saw a minor reduction of half a cent, bringing the average price to $3.727 per gallon, 37.8 cents lower than the previous year.

Gulf Coast (PADD3)

Contrary to the general trend, the Gulf Coast experienced a slight increase of seven-tenths of a cent, with the average price now at $3.468 per gallon. Despite this weekly rise, the price remains 36.3 cents lower than it was in the same period last year.

Rocky Mountain (PADD4)

The Rocky Mountain region saw a decrease of 1.3 cents, bringing the price to $3.718 per gallon. This is a drop of 40.9 cents from the year-ago period.

West Coast (PADD5)

The West Coast experienced a reduction of 2.4 cents, bringing the price to $4.370 per gallon, 38.3 cents lower than last year.

West Coast Less California

This subregion saw a slight decrease of 0.9 cents, with prices now averaging $3.968 per gallon, a 43.3-cent decrease from the previous year.

California

In California, prices fell by 4.3 cents to $4.831 per gallon, which is 32.7 cents lower than last year.

Source: Transport Topics

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Consistent Drop in Diesel Prices Nationwide

Diesel prices have decreased for the second week in a row, with the national average moving from $3.826 per gallon to $3.779 per gallon.

Price Drops Vary by Region

The Gulf Coast observed the most substantial drop, as diesel prices fell nearly 10 cents from $3.551 to $3.461 per gallon. Noteworthy reductions were also seen on the East Coast and in the Lower Atlantic region, where prices dropped by five cents per gallon, reducing from $3.829 to $3.778. In California, diesel prices decreased significantly from $4.932 per gallon to $4.874, while the West Coast regions experienced a reduction of almost six cents per gallon.

Source: The Trucker

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The decrease in diesel prices is evident across the entire country. The Gulf Coast boasts the lowest prices at $3.384 per gallon, while California has the highest average price at $4.911 per gallon. On the East Coast, drivers are paying around $3.789 per gallon.

The EIA attributes this price drop to several factors. Demand for distillate fuels, which are crucial for the trucking and home heating sectors, has dipped to 3.67 million barrels per day. This decline is largely due to reduced manufacturing activity and a milder winter than anticipated. Additionally, there is a robust supply of renewable fuels, further impacting diesel prices.

A recent Reuters report highlighted that the two most recent U.S. ultra-low sulfur diesel futures contracts settled in the steepest contango since 2020. In a contango market, the current prices of commodities are lower than those for future delivery dates. The continual decrease in diesel prices, influenced by various market dynamics and supply factors, signifies a notable trend for both consumers and industries reliant on this essential fuel.

Source: The Trucker

The post Diesel Prices in the U.S. Drop for Nine Consecutive Weeks appeared first on Truck Drivers USA.

According to the Energy Information Administration (EIA), the national average price as of May 13 was $3.848 per gallon. This marks a decrease from $3.894 per gallon on May 6 and $3.947 per gallon on April 29, showing a consistent downward trend.

The Rocky Mountain region is the only area in the country where prices have risen. In this region, the average price of diesel increased slightly to $3.791 per gallon as of May 13, up from $3.785 on May 6.

On the West Coast, diesel prices are notably higher, though they have still been steadily decreasing. The average price is now $4.551 per gallon, down from $4.580 on May 6 and $4.625 on April 29. This gradual decline provides some relief to drivers in this region, who typically face the highest fuel costs in the country.

In contrast, the Gulf Coast continues to enjoy the lowest average diesel prices in the nation. As of May 13, the average price there is $3.559 per gallon, down from $3.617 on May 6 and $3.657 on April 29. This region’s consistently lower prices are a significant advantage for local drivers and businesses.

On the East Coast, the average diesel price is $3.916 per gallon as of May 13. This represents a decrease from $3.966 per gallon on May 6 and $4.025 per gallon on April 29. The declining prices in this region are particularly beneficial for the heavy traffic and high transportation demands along the eastern seaboard.

Looking ahead, the EIA forecasts that diesel fuel prices will average $3.92 per gallon in the second quarter of 2024, $3.99 in the third quarter, $4.15 per gallon in the fourth quarter, and $4.18 per gallon in the first quarter of 2025. These projections, released earlier this year, suggest a gradual increase in prices over the next year, reflecting expected fluctuations in supply and demand.

Source: The Trucker

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As per the most recent data furnished by the Energy Information Administration (EIA), the average diesel price stands at $3.996 as of April 1. This represents a significant decline from $4.034 recorded on March 25 and $4.028 reported earlier in the month on March 18.

Even more notably than dropping diesel prices, this downward trend is not confined to any particular region but is a nationwide phenomenon, as indicated by the EIA’s data. Prices have seen a consistent decrease across all regions of the U.S.

Among these regions, the Gulf Coast boasts the lowest average diesel price, with a gallon setting consumers back by only $3.670. However, in California, widely known for its strict regulatory environment, diesel prices remain relatively high, still hovering above the $5 mark at $5.221 per gallon. Despite these high prices, there has been a slight but perceptible downward trend in prices within the Golden State.

Turning attention toward the Midwest, diesel prices have dropped to $3.949 per gallon from $3.986 recorded on March 25, indicating a steady and gradual, but influential decline.

Similarly, in New England, where prices tend to be higher compared to other regions, the average stands at $4.305 per gallon, a slight reduction from $4.321 per gallon noted on March 25, according to data compiled by the EIA.

Overall, the recent downturn in diesel prices across the nation has brought welcome relief to consumers and businesses alike, potentially offering some respite amid broader economic uncertainties.

Source: The Trucker

The post A Welcome Reprieve for Driver’s Wallets, Diesel Prices Drop Below $4 for First Time Since February appeared first on Truck Drivers USA.

As reported by the Energy Information Administration, as of March 18, the price stood at $4.028 per gallon, marking a slight uptick from $4.004 per gallon recorded on March 11 and $4.022 per gallon on March 4.

Across the country, diesel prices exhibit varying trends. California holds the highest price at $5.203 per gallon, though this is slightly lower than the $5.207 per gallon recorded on March 11.

Conversely, the Gulf Coast boasts the lowest average price at $3.745 per gallon, reflecting an increase from $3.702 on March 11 and $3.731 per gallon on March 4.

In the Midwest, drivers can anticipate paying just under $4 per gallon, with an average of $3.955, which has risen from $3.913 on March 11.

Meanwhile, in the Rocky Mountain region, the average price has dipped to $3.968 per gallon on March 18, down from $3.992 on March 11.

On the East Coast, the average price stands at $4.127 per gallon, up slightly from $4.120 on March 11.

Source: The Trucker

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“I would hope 2024 will be a gentler year for diesel,” said Patrick De Haan, GasBuddy head of petroleum analysis.

The U.S. on-highway retail diesel price average commenced the year at $3.876 per gallon, a noticeable decrease from the 2023 starting price of $4.583 per gallon. Last year witnessed fluctuations in the national average, hitting a low of $3.794 in July and a high of $4.633 in September.

American Trucking Associations Chief Economist, Bob Costello, predicts minimal movement in diesel prices this year, drawing parallels to December 2023 when the national on-highway average consistently remained around or below the $4-per-gallon mark.

In 2023, industry observers closely monitored the actions of the Federal Reserve and OPEC oil ministers. However, analysts suggest that OPEC faces a more challenging task in 2024 as its members strive to balance revenue needs for their oil-dependent economies through output cuts while retaining market share amid record U.S. crude production.

Wood Mackenzie, a business intelligence firm, anticipates the average benchmark Brent crude to be $88 per barrel in 2024, compared to $83 per barrel in 2023. West Texas Intermediate crude is expected to average $83 per barrel, up from $78 per barrel in 2023, according to Vice President of Refining, Chemicals & Oil Markets Alan Gelder.

Bank of America’s Francisco Blanch forecasts Brent and WTI prices to average $90 per barrel and $86 per barrel, respectively, as the OPEC+ alliance pledges an additional 500,000 barrels per day of production cuts.

While Brent’s 2023 low was $71.84 a barrel in June, peaking at $96.55 per barrel in late September, industry experts remain optimistic. Despite fluctuations, analysts project a balanced market in the first half of 2024, with ING forecasting a small surplus in the second quarter.

BOA’s Blanch notes that global oil demand grew by 2.1 million barrels per day year-over-year in 2023, and it is expected to grow by 1.1 million barrels per day in 2024, benefiting from the conclusion of the U.S. monetary tightening cycle and increased supply in non-OPEC+ nations.

As a result, OPEC’s production cuts are expected to be reversed, and with rising oil demand, global diesel production is poised to increase in the coming year. This positive outlook indicates a more predictable and potentially more affordable fuel landscape for motor carriers in 2024.

Source: Transport Topics

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“Additional refinery capacity that came online in late 2022, combined with additional capacity expansions expected to come online in 2023, will also contribute to rising supplies of both gasoline and diesel fuel internationally, further contributing to lower prices globally in 2023 and 2024,” according to the EIA). “We also estimate that U.S. refiners will continue to produce gasoline, even as prices decrease, to meet higher global demand for diesel fuel.”.

According to concrete data, number 2 diesel concluded 2023 with an average price of $3.972 per gallon. In January 2022, prices hovered around $3.724 per gallon, reaching a peak of $5.754 in June 2022 and starting 2023 at $4.576.

While diesel prices at the pump align with the EIA’s projections, the cost remains nearly double the $1.998 recorded in February 2016. If the federal agency’s forecast holds, truck diesel is anticipated to slightly decrease to approximately $3.70 per gallon in 2024.

Despite the usual correlation between diesel and passenger vehicle fuel costs, the two appear somewhat out of sync. Diesel experienced fluctuations, dropping to $3.802 in June 2023 before rising to $4.563 in September. Industry observers, including GasBuddy, express optimism that prices will decrease and stabilize.

However, the ongoing crisis in the oil-rich Middle East introduces an element of uncertainty that could impact truck transportation costs.

“After 13 straight weeks of decline, average gasoline prices have edged higher due to optimistic comments from the Fed on cutting interest rates in 2024, coupled with Houthi attacks on vessels in the Red Sea, boosting concerns of a disruption to global shipping, including oil shipments,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “For now, the price of gasoline has already jumped but could ease slightly this week ahead of the New Year. For now, I’m optimistic that we may still have a chance of seeing the first $2.99 national average since 2021 sometime before spring arrives.”

The U.S. achieved another record high for crude oil production at 13.3 million barrels per day. In the prior administration, such production records led to the nation becoming a net exporter, often associated with the concept of “energy independence” and low gasoline and diesel prices. If these metrics persist, barring further energy disruptions, truckers may experience some relief in the months ahead.

Source: TruckersReport

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Key Points

1. Regional Price Movements:
   • Two additional regions have now dipped below the $4 mark, with the East Coast reaching $3.969 and the Rocky Mountain region at $3.933.
   • The West Coast, particularly in California, remains at the higher end of the national average range, with prices at $4.655 and $5.231, respectively.
   • All 10 regions experienced declines over the past week, with the West Coast-less-California region leading the decrease with a drop of 15.7 cents.
2. Gasoline Price Movement:
   • Gasoline prices are also on the decline, with an 8.3-cent drop bringing the national average to $3.053 per gallon.
   • Four of the 10 regions now have a sub-$3 average price, with the Gulf Coast leading the way at $2.547 per gallon.

While some regions continue to experience higher prices, the overall trend of declining fuel costs is welcomed news for truckers and consumers alike. The sustained decrease in diesel and gasoline prices reflects a positive economic outlook as we approach the close of the year.

Source: Transport Topics

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