Three sample fuel surcharge clauses for U.S. contractor and service agreements. Each one ties the surcharge to official EIA fuel prices and ends it automatically when prices fall. Replace the text in [BRACKETS] with your own terms.
Sample language only. These templates are general examples, not legal advice. Contract and consumer disclosure rules differ by state and industry; have an attorney review any clause before you rely on it.
Clause 1 — Per-mile surcharge indexed to EIA
Best for couriers, hotshot and box truck operators, towing, and any job billed by distance.
FUEL SURCHARGE. The prices in this Agreement are based on a baseline fuel price of $[BASELINE PRICE] per gallon of [regular gasoline / on-highway diesel] (the "Baseline Price"). If the average retail price for that fuel in the [STATE or PADD REGION] region, as most recently published by the U.S. Energy Information Administration ("EIA") on the date of service (the "Current Price"), is higher than the Baseline Price, [CONTRACTOR] may add a fuel surcharge to the invoice calculated as follows:
Fuel Surcharge = (Current Price − Baseline Price) ÷ [MPG] miles per gallon × round-trip miles driven
No fuel surcharge applies when the Current Price is equal to or lower than the Baseline Price. The surcharge will be shown as a separate line on each invoice together with the Current Price used. The surcharge is intended only to recover increased fuel costs.
Clause 2 — Percent-of-invoice surcharge
Best for landscaping, HVAC, plumbing, electrical and other local services billed per job or per month.
FUEL COST ADJUSTMENT. The parties agree that fuel represents approximately [FUEL SHARE]% of [CONTRACTOR]'s cost of providing the Services, based on a baseline fuel price of $[BASELINE PRICE] per gallon (the average retail price of [regular gasoline / on-highway diesel] for the [STATE or PADD REGION] region published by the U.S. Energy Information Administration ("EIA") for [MONTH YEAR]).
If the most recent EIA price for that region on the invoice date (the "Current Price") exceeds the baseline price, [CONTRACTOR] may add a fuel cost adjustment to the invoice equal to:
Invoice subtotal × [FUEL SHARE]% × (Current Price − baseline price) ÷ baseline price
The adjustment will be itemized separately on the invoice, will be reduced as the Current Price declines, and will not apply when the Current Price is at or below the baseline price.
Clause 3 — Tiered surcharge table with a cap
Best for recurring routes and commercial accounts that want a predictable, pre-agreed schedule.
FUEL SURCHARGE SCHEDULE. A fuel surcharge will apply to each [visit / trip / invoice] according to the schedule below, based on the average retail price per gallon of [regular gasoline / on-highway diesel] for the [STATE or PADD REGION] region published by the U.S. Energy Information Administration ("EIA") on the first Monday of each month (the "Index Price"):
Index Price at or below $[BASELINE PRICE] ............ no surcharge
$[TIER 1 LOW] – $[TIER 1 HIGH] ....................... $[AMOUNT 1] per [visit / trip]
$[TIER 2 LOW] – $[TIER 2 HIGH] ....................... $[AMOUNT 2] per [visit / trip]
Above $[TIER 2 HIGH] ................................. $[AMOUNT 3] per [visit / trip]
The surcharge for a calendar month is fixed by the Index Price for that month and will not exceed $[CAP AMOUNT] per [visit / trip] without [CLIENT]'s written consent. [CONTRACTOR] will provide the Index Price used upon request. The surcharge ends automatically in any month in which the Index Price is at or below $[BASELINE PRICE].
How to fill in the blanks
Baseline price: use the fuel price your rates were built on. The FairFuel calculator can look up the official EIA average for the month you signed.
Region: name your state if EIA publishes it, otherwise your PADD region (for example “Midwest (PADD 2)”). The calculator shows which index applies to your state.
MPG or fuel share: use real numbers from your fuel logs or books. A surcharge based on honest inputs is one a customer can verify, and one you can defend.
Fuel surcharge clause FAQ
Do I need a fuel surcharge clause in my contract?
If you want to add a surcharge to work that is under a written agreement, yes. Without a clause, a mid-contract surcharge is a price change that generally needs the customer’s consent. A clause agreed in advance avoids disputes.
What should a fuel surcharge clause include?
Four things: the baseline fuel price, the public index used for the current price (for example the EIA price for your state or region), the formula, and a statement that the surcharge goes away when prices return to the baseline.
Why reference the EIA in the clause?
The U.S. Energy Information Administration is a neutral federal source that publishes prices every week. Tying the surcharge to it means neither side controls the number, which makes the clause easier to accept and to verify.
Can I add a fuel surcharge without a contract?
For one-off jobs you can include a fuel surcharge in your quote or estimate, as long as the customer sees it before agreeing to the work. Disclosure rules vary by state and industry.