# Fuel surcharge

> A fuel surcharge is an adjustable fee added to freight rates that rises and falls with fuel prices, protecting carriers from volatility without renegotiating every contract.

Because fuel is a large, fluctuating share of transport cost, carriers apply a surcharge tied to a published fuel price index. When fuel rises, the surcharge rises automatically; when it falls, so does the charge — keeping base rates stable.

A TMS pricing engine can manage fuel surcharges as a dynamic price index that auto-updates across all affected calculations, so a single index change flows through to every relevant quote and invoice.

## Frequently asked questions

### How is a fuel surcharge calculated?

Typically as a percentage of the base rate or a per-kilometre amount tied to a fuel price index. When the index crosses defined thresholds, the surcharge adjusts. A pricing engine can automate this across all calculations.


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Canonical page: https://transportial.com/en/glossary/fuel-surcharge