What is fuel surcharge?

A fuel surcharge is an additional fee that is added to the cost of goods or services to account for fluctuations in fuel prices. This fee is typically applied by companies in industries that rely heavily on fuel, such as transportation and delivery services.

The purpose of a fuel surcharge is to help businesses offset the increased costs associated with rising fuel prices. It is meant to be a temporary measure that can be adjusted as fuel prices fluctuate.

Fuel surcharges are calculated based on a variety of factors, including the current price of fuel, the distance being traveled, and the type of vehicle being used. The cost of the fuel surcharge can vary widely depending on these factors.

While fuel surcharges can help businesses manage the impact of fuel price fluctuations, they can also be a source of frustration for consumers as they can add significant costs to goods and services. It is important for businesses to be transparent about their fuel surcharges and to clearly communicate how they are calculated.