Rates are crashing and fuel to the moon!

I'll do you one better...

Let’s run the numbers, sir, assuming:

• Fuel price = $5.00/gallon
• Your truck = 6 mpg
• So your fuel cost = $5.00 ÷ 6 = $0.833 per mile

Now let’s estimate your fuel surcharge (FSC):
If at $3.50/gal you get $0.480/mi, and
at $3.56/gal you get $0.492/mi,
that’s an increase of $0.012 per 6¢ of fuel
→ That’s $0.02 increase per 10¢ in fuel price, or $0.20 per $1.00

So from $3.50 to $5.00 is a $1.50 increase =
$0.20 × 1.5 = $0.30 increase

Estimated FSC at $5.00/gal:

• $0.480 + $0.30 = $0.780 per mile

Your net fuel profit/loss per mile:

• Fuel surcharge: $0.780
• Actual fuel cost: $0.833
• Loss: −$0.053 per mile

Summary:

Fuel Price FSC Rate Fuel Cost/mi Net (Profit/Loss)
$3.50 $0.480 $0.583 −$0.103
$3.56 $0.492 $0.593 −$0.101
$5.00 $0.780 $0.833 −$0.053
✅ Bottom Line:
As fuel prices rise, your surcharge rises too, so:

• You lose less per mile, but you're still underwater.
• You're getting closer to breaking even.
• At about $5.34/gal, your surcharge would break even with your fuel cost, assuming the same formula continues.

Let me know if you want a simple calculator built where you can plug in fuel price and MPG and see how much you’re making or losing per mile.

As it shows while my fuel surcharge doesn't cover my whole fuel cost it gets closer to doing so as fuel prices go up. Finally reaching equilibrium at 5.34 cents per gallon.

The numbers are even better than they seem though because my customer bases the fuel surcharge off the national diesel price including high cost states like California and New York so the fuel surcharge is always based on higher diesel prices than I'm paying and I also get paid the fuel surcharge on more miles than I drive since they frequently pay on the longest route and I take the shorter route.

 

So the national avg last week was 3.57. But we’ll use your 3.56. Since you have made it easy math. If fuel jumps a dollar to say 4.56, you spend .03 cents less per mile. On a 10,000 mile month that’s $300.00. That sounds great, but, the spike in fuel spirals off into inflationary costs. So now you are paying $400.00 more in everyday day goods and services. Plus there is an increase cash flow burden.(now I understand that may not be an issue if you receive settlements every week).

Yes while I agree you see a higher settlement, but with higher oil cost you spend more. Everything from groceries, tires, gas, electricity, etc, etc. So while you think it’s great for high fuel costs, it’s really not.

 

Good!

 

That is a good point. Even though higher fuel prices are good for my business fuel cost the rising cost of everything else is certainly not good for my business or personal expenditures.

 

Fuel has already jumped 40 cents out in AZ.. Been 3.70 most everywhere the whole year, already up over 4.00 pump price now..

 

Can’t speak for pump prices because I never pay attention to them.
In the South East I’ve seen $0.30 on average increase over last week on my network. Coming down a couple cents after midnight

Last week in Florence, SC (a regular fuel stop) was $2.99
$3.45 TA Atlanta South where I’ll take on 100 gallons in the morning.



Today..

 

Much ado over nothing me thinks. Going down another $0.16 on average after midnight.

 

Imagine that

 

Today, Petro,Florence,sc with discount 3$