What is fuel surcharge in India?
Now this transaction charge that you pay in addition to the actual charge at any petrol pump is called a fuel surcharge. The fuel surcharge is usually 2.5% and is actually little more as service tax is levied on this surcharge.
What is meant by fuel surcharge?
A national fuel surcharge is an extra fee that trucking companies (or third parties) charge to cover the fluctuating cost of fuel. It is calculated as a percentage of the base rate and is usually added to a shipper’s freight bill to cover the cost of operations.
What is a normal fuel surcharge?
What is a Fuel Surcharge? Fuel for trucks and other equipment used in the supply chain is never a consistent price. In fact, across the US, the average price per gallon will fluctuate approximately $0.10 per gallon every week.
How is a fuel surcharge calculated?
Fuel Surcharge Formula Calculation
To use the formula to calculate your fuel surcharge, subtract your fuel threshold amount from the actual price per gallon and divide that amount by vehicle’s miles per gallon. This gives you your per-mile surcharge amount.
Why do we pay fuel surcharge?
Fuel Surcharge is a Card Transaction Charge. But as Fuel business operate in a very low margin, they can’t absorb this transaction charge as it hits their profit margin. So the transaction charges used on fuel purchases are now passed on to the customer, so the fuel station can receive 100% of what a customer pay.
What is the purpose of surcharge?
A surcharge is an additional charge, tax, or payment that a company adds to the already existent cost of a good or service. Many industries, including travel, telecom, and cable, will add surcharges to offset the cost of higher prices, such as fuel, or regulatory fees imposed by the government.
What is fuel surcharge waiver in India?
It is nothing, but the transaction charge levied for using the credit card for fuel transactions. For example, if you have made a fuel purchase for Rs. 1000, you will end up paying about Rs. 28 additionally, out of which Rs. 25 is a surcharge and the rest are for the service tax.
What does 100 fuel surcharge mean?
When you pay the surcharge for diesel fuel, it goes to either the broker or the driver as part of the carrier company. Thus, when the carrier mentions a 100 fuel surcharge, what they’re talking about is that the entirety of the surcharge should be allocated to the driver.
How do you explain fuel surcharge to customers?
The Fuel Surcharge Equals:
The base price of fuel in a shipping contract: $1.25/gallon. The increased cost of fuel: $4.85 – $1.25 = $3.60/gallon. Divided by the average miles per gallon of a truck = 6.5 mpg. The fuel surcharge is $3.60 divided by 6.5 = $0.55 cents per mile.