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How does SDS calculate its Fuel Surcharge?
Fuel is not a profit center for SDS. SDS has a tangible cost it incurs on each delivery it makes. As fuel prices rise, our costs go up, and as they go down, so do our costs. SDS adjusts its FSC every month to reflect what it is paying at the pump. At the beginning of each month, SDS gets the rates for each week of the prior month from the DOE site listed below and takes that average for the subsequent months' FSC. To convey this cost, SDS uses a chart and the United States DOE website. The calculation chart is shown below:
SDS uses the average of each week of the prior month as posted on the US DOE website. Shown below is a link to the DOE site. The link may change from time to time, but we always use the US Average Premium Reformulated Method. We never charge over the rate, but reserve the right to charge under these rates, on occasion.
Step 2: Get the average for the prior month. In this case, it would be the weekly average for the 5 weeks in January divided by 5 ((3.541+3.725+3.734+3.750+3.793) / 5) = 3.728.
Step 3: Go back to the SDS Range/Surcharge Chart at the top of this page to the corresponding rate. In this instance, it would be 23%.
Step 4: That rate is used as the multiplier against the base rate to get the FSC.
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