Fuel: Pass It On

With no real relief to record-high gas prices in sight, landscape contractors are increasingly looking for ways to recoup some of their fuel costs. Fuel surcharges are one way contractors ease the blow. As there is no national standard for companies to follow, contractors are responsible for implementing their own formulas – and breaking the often unwelcomed news to their clients.
 
The U.S. government’s Energy Information Administration (EIA) offers retail gasoline and diesel price data contractors can reference to help implement their fuel surcharges. Every Monday, the EIA conducts a survey of retail on-highway diesel prices from a sample of approximately 350 truck stops and service stations around the country. The results are compiled into a U.S. average price and average prices for eight regions of the country and California, and published every Monday at 5 p.m. To see results, visit the EIA Web site www.eia.doe.gov.
 
The Owner-Operator Independent Drivers Association also provides information contractors can use to implement a fuel surcharge. A chart on the association’s Web site lists a suggested surcharge based on region or the amount paid per gallon of gas. For example, on June 23, the average price of gasoline in the Midwest was $4.57, with a suggested fuel surcharge of 69 cents per mile driven. For more information and a template for a client notification letter, visit www.ooida.com.