·2 min read
A diesel surcharge is a percentage on top of your rate that moves with the diesel price. That way you do not have to renegotiate prices every time diesel gets more or less expensive. You need three things: an independent price source, a base price and a fixed calculation method.
The TLN diesel price
Transport en Logistiek Nederland (TLN), the Dutch transport association, publishes a daily diesel price in its Brandstofmonitor. Many hauliers and shippers use it as their source because anyone can check it. Agree which price you use: a daily price, a weekly or monthly average, and whether it includes or excludes VAT.
Method 1: a scale
With a scale, each price level has a fixed percentage. For example: 0% below the base price, and one percent more for every step of a few cents above it. A scale is easy to explain and check. Large hauliers often publish their scale on their website.
Method 2: the formula
With the formula, you calculate the surcharge based on how much fuel weighs in your cost price:
Surcharge % = (current diesel price − base price) ÷ base price × fuel share of cost price.
Worked example, with made-up figures: base price € 1.20 per litre, current price € 1.50, fuel is 30% of your cost price. The price has risen 25% (0.30 ÷ 1.20), so the surcharge is 25% × 30% = 7.5%.
What to record
- The price source, for example the TLN diesel price.
- The reference period: per day, week or month, and from when the new surcharge applies.
- The base price at which the surcharge is 0%.
- The scale or formula, including rounding.
- Whether the surcharge also goes down when diesel gets cheaper.
Passing the surcharge on to your carriers
If you charge your customer a diesel surcharge, your carriers expect to see it reflected too. Use the same source and method, so everyone can follow it and there is nothing to argue about.
How Charterportaal helps
Charterportaal can keep track of the diesel surcharge automatically based on the TLN diesel price and your own agreements, and includes it on your carriers' invoices. No more spreadsheet to update every week.
Frequently asked questions
How do I calculate a diesel surcharge?
Choose a price source (such as the TLN diesel price), a base price and a method. With the formula the surcharge is: (current price − base price) ÷ base price × the fuel share of your cost price. With a scale, each price level has a fixed percentage.
Where can I find the TLN diesel price?
TLN publishes the daily diesel price in the Brandstofmonitor on tln.nl.
Is a diesel surcharge mandatory?
No. It is an agreement between you and your customer or carrier. Record the source, base price, reference period and method in your agreement.