3 versions · copy & paste
Fuel adjustment clause templates
A fuel adjustment clause sets the rules in advance: the baseline price, the index, how the surcharge is calculated, and how much notice you'll give. It's the best protection for long contracts, seasonal agreements, and bids priced weeks before the work. Have any clause reviewed for your state and industry before using it.
01 · Standard
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Fuel Adjustment. Prices in this agreement assume a U.S. average retail diesel price of $[base]/gal as published weekly by the U.S. Energy Information Administration (EIA). If the published price exceeds $[base]/gal, [Company] may add a fuel surcharge of [x]% of the [service/transportation] charge for each $[step]/gal above $[base], calculated on the price published for the week before service. [Company] will give at least [number] days' written notice before applying or changing the surcharge, and will remove it when the published price returns to $[base]/gal or below.
02 · Flat amount per job
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Fuel Surcharge. The prices in this agreement assume a U.S. average retail [diesel/gasoline] price of $[base]/gal (U.S. Energy Information Administration, weekly). For each full $[step]/gal the published price exceeds $[base]/gal, [Company] may add $[amount] per [job/visit/load]. The surcharge will be calculated monthly using the average published price for the prior month, shown as a separate line on invoices, and removed when the published price falls to $[base]/gal or below.
03 · Seasonal contract (e.g. snow removal)
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Fuel Adjustment. Seasonal pricing is based on a diesel price of $[base]/gal (EIA weekly U.S. average) at signing. If the published price averages more than $[threshold]/gal in any month of the season, [Company] may invoice a fuel adjustment equal to [x]% of that month's services. Customer will be notified in writing before any adjustment is invoiced.
(FAQ)
Contract clause questions
01What is a fuel adjustment clause?
A contract term that lets prices move with a published fuel index, so neither side has to renegotiate when fuel prices change.
02Can I add a fuel clause to an existing contract?
Usually only by agreement or at renewal, unless the contract already allows price changes with notice. Read the change and notice terms first.
03Which fuel index should I use?
In the U.S., the EIA's weekly retail price series (national or regional) is free, public, and widely used. Pick diesel or gasoline to match your fleet.