Customer levies and surcharges

Prevent revenue loss by managing fuel levies and surcharges

Track fuel costs per job to avoid missed charges or revenue loss. With Transvirtual, adjust fuel levy rates in real-time to stay in control of your finances.
fuel levy rates

Trusted choice by nearly 100,000 businesses

Set and implement fuel levy rates on the go with complete flexibility

Set one levy for everyone, apply the same levy to multiple customers, or customise individual levies. This feature also helps you keep up with fuel price changes to protect your revenue. 

Before

Transvirtual

vs.

After

Transvirtual

Auto-calculate fuel surcharges with precision, saving time and preventing revenue loss

Flexible Customization

Adapt levies to suit your needs.

Set them by zones, like cities versus regions, or by freight type, such as cartons versus pallets. Choose the metrics that work best for your operations.

Auto Calculate Fuel Surcharges

Manage fuel fluctuations

Make sure your transport business isn’t underquoting your services by using base rates and fuel surcharges to provide accurate and competitive quotes.

Set up customer levies

Tailor levies

Transvirtual lets you easily create and tailor levies and surcharges. These can be based on percentages or flat rates or linked to specific dates or date ranges.

Tailored to Your Business

Our system adjusts to your business

Apply levies per shipment or invoice, using either percentages or flat rates. Add extra fees like account charges and more. We provide the tools; you set the rules.

Understanding Fuel Surcharge Calculations

Calculating fuel surcharges

To accurately determine fuel surcharges, transportation companies must closely monitor current fuel prices, typically expressed in cents per gallon. 

This practice ensures that freight rates remain in sync with the ever-changing fuel market, protecting you from revenue loss. 

Implementing Transparent Fuel Surcharge Policies

Ensure transparency with clients by communicating your fuel levy policy, including how they’re calculated, effective dates, and pricing impacts. Update contracts as needed to incorporate fuel levy provisions. 

You will never regret making the switch.

Frequently asked questions

A fuel levy is a surcharge added by transport companies to cover fluctuating fuel costs. So instead of offering fixed rates to clients, you provide a base rate along with a fuel surcharge to prevent revenue loss.  

 

With Transvirtual’s Transport Management System, you can easily update fuel levies on the go to stay competitive and profitable. 

Calculating a fuel surcharge involves tracking current fuel prices and determining the extra cost per gallon of fuel used. Transport companies often express this surcharge as a percentage of the base freight rate or as a fixed amount per mile. The formula can vary, but it typically considers factors such as fuel consumption, distance traveled, and the difference between current and baseline fuel prices. 

Monitor Fuel Costs 

 
Keeping up to date with current fuel costs is vital for accurately calculating fuel levies. Transport companies can use this information to tailor their fuel levies, ensuring that invoices accurately reflect the fluctuating trends in the market. This approach helps companies offset fuel expenses, especially for heavy vehicles. 
 

Leveraging the U.S. Government’s Fuel Tax Credits 

Fuel tax credits offer significant benefits for U.S. transport operators. These credits apply to both highway and off-highway fuel uses, including auxiliary power units, pumps, refrigeration units, school buses, and local buses. 

When calculating fuel levies, consider these rebates to reduce overall fuel costs, ensuring levies reflect actual expenses. This results in cost savings for both companies and clients. 

Responding to Fluctuating Fuel Prices 

 
Transport operators often struggle with maintaining profitability amid fluctuating fuel prices. Swiftly adjusting fuel surcharges is vital to respond to market shifts. This flexibility also helps operators effectively manage extra expenses linked to fuel price changes. 

 
In addition to reacting to changes, proactive steps like adopting fuel-efficient technologies and optimizing routes boost cost-effectiveness. Considering alternative fuels and tapping into government incentives for sustainability can also enhance long-term savings and environmental responsibility. 

 
Balancing Costs and Customer Expectations 

 
By factoring current fuel prices into freight rate calculations, companies can justify necessary additional costs. The best part? You don’t need to do it on your own. A transportation management system like Transvirtual streamlines fuel surcharge management with automated calculations based on customizable parameters. 

Still have questions?

Speak to an expert