Re: Oil Prices

Posted by john in la on August 12, 2005 at 10:29:11 from (70.149.241.79):

In Reply to: Re: Oil Prices posted by Dan on August 12, 2005 at 06:55:25:

A fuel surcharge is a way to adjust the rate on a daily bases based on what fuel is selling for that day.

See it would not make a difference if fuel was $1.00 or $10.00 a gallon as long as it stayed the same every day. The daily change in the price is why they need a surcharge.

A company bids/sets a rate for what they will charge to haul a box X pounds and X size from point A to point B. This rate may be in effect for a year or more.
Then fuel goes up .10 a gallon today down .05 a gallon tomorrow and back up .25 the next day. No way to set a rate if you do not know what your expenses will be tomorrow.
So they set a rate based on say $1.00 a gallon fuel cost. Then add to their rate to cover the fuel for cost over $1.00 a gallon. They call this a fuel surcharge.

Even your elect bill has a fuel surcharge. Have you seen your elect bill for this month yet?????

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• Re: Oil Prices Dan 11:08:25 08/12/05 (0)

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