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FUEL SURCHARGE PROPOSAL

An indexed rate that
tracks the fuel

Prepared for Driven Solutions  ·  September 2026
THE RECOMMENDATION

Replace the flat fee. Track the fuel.

One indexed rate moves with the pump instead of a fixed dollar amount.
$0.39
per billed mile at today’s diesel
$46.80
surcharge on the average job
THE RATE

One formula. Rounded to the cent.

Surcharge per billed mile
( diesel price  −  $3.00 )  ÷  8
Rounded to the nearest cent, applied to every mile. 8 is the fleet average MPG.
Rises when diesel rises. Falls when it falls.
WHY

The flat fee stopped tracking the pump.

Diesel / galFuel / job
Contract signed$3.00$45.00
May 2026$4.25$63.75
Today$6.15$92.25
Added fuel cost per job today: $47.25. The $46.80 indexed rate covers 99%.
THE SCALE

The rate follows the price.

Diesel / galRate / milePer average job
$3.00$0.00$0.00
$3.50$0.06$7.20
$4.00$0.13$15.60
$4.50$0.19$22.80
$5.00$0.25$30.00
$5.50$0.31$37.20
$6.00$0.38$45.60
$6.15$0.39$46.80
$6.50$0.44$52.80
$7.00$0.50$60.00
$7.50$0.56$67.20
$8.00$0.63$75.60
THE OUTLOOK

Fuel prices stay elevated.

EIA Short-Term Energy Outlook, Sept 2026
U.S. retail diesel 2026 average$5.07 / gal
U.S. retail diesel 2027 average$4.40 / gal
Distillate inventories below the 5-year low through most of 2027
Tight global supply, with upside risk if Middle East flows stay constrained
DIESEL  →  RATE  →  PER JOB
$6.15$0.39 / mi · $46.80
$6.50$0.44 / mi · $52.80
$7.00$0.50 / mi · $60.00
$8.00$0.63 / mi · $75.60
The indexed rate moves automatically. Neither side renegotiates.
HOW IT WORKS

One rate. One service week.

01Set the rate
The prior week’s diesel price sets the per-mile rate.
02Lock it in
One rate applies to the full work week.
03Bill it clearly
The surcharge is its own line, not buried in the mileage.
04Let it breathe
The rate adjusts up or down automatically each week.
NEXT STEP

Combined rates, ready to agree.

Base rates stay unchanged. The surcharge rides on top.
CurrentAt today’s diesel
Enroute$1.50 / mi$1.89 / mi
On-hook$2.75 / mi$3.14 / mi
Requires a signed amendment to the contract rate schedule.
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