What is a fuel surcharge policy?
— Simply defined the fuel surcharge policy is a disclosure of conditions in which a company performs its services. In general, the fuel surcharge policy was meant to pass fuel cost over a certain threshold to the end user. 2. What are the conditions outlined in a fuel surcharge policy if mileage-based? – These conditions are set by an equation where all variables are precisely defined. Best way to understand such conditions is by example: a. Miles billed 100.00 b. Benchmark gallons per mile 5.00 c. Gallons used 20.00 d. Fuel Surcharge Base Rate (threshold) 1.10 e. Fuel Cost based on benchmark rate 22.00 f. Current official average fuel rate 2.407 g. Cost of fuel for this trip 48.14 h. Difference between benchmark and current cost 26.14 i. fuel surcharge per mile (round-off to near cent) 0.26 j. One other variable taking part in the above mentioned examples is the “Current official average fuel rate”. Disclosing a correlation such as “Current official average fuel rate provided by Ener
