MarginShock

Price increase letter due to fuel costs

When higher costs look permanent, folding them into your base price is cleaner than a long-running surcharge. These letters explain the increase in a sentence, state the new price and date, and keep the relationship intact.

01 · Standard

Template · review before sending

Subject: An update to our pricing from [date]

Hi [Customer name],

Over the past [months], our operating costs, especially fuel, have risen significantly. We've absorbed as much as we can, but to keep providing the same level of service we're adjusting our prices by [x]% (about $[amount] per [job]) starting [date].

We don't make this change lightly. The new price reflects our higher costs, and we've kept it to the minimum needed to cover them.

Your service won't change in any other way. If you'd like to talk it through, just reply or call us at [phone].

Thank you for being a customer,
[Your name]
[Company]

02 · Short

Template · review before sending

Subject: Pricing update from [date]

Hi [Customer name],

Our costs, especially fuel, have risen a lot this year. From [date], our [service] price will be $[new price] (up from $[old price]). Nothing else about your service changes.

Thanks for being a customer,
[Your name], [Company]

03 · Replacing a fuel surcharge

Template · review before sending

Subject: Removing our fuel surcharge and updating base prices

Hi [Customer name],

Since [month], we've charged a temporary fuel surcharge of $[amount]. Fuel costs have stayed high, so from [date] we're removing the surcharge and including it in our base price instead.

Your new price will be $[new price] per [job], [the same as / slightly less than] you pay today with the surcharge. It's simply one clear price instead of two lines.

Thank you for your business,
[Your name], [Company]

(FAQ)

Price increase letter questions

01How much notice should I give for a price increase?

At least one billing cycle for recurring customers, or whatever your contract requires. Thirty days is a common, respectful default.

02Should I explain why prices are going up?

Briefly, yes. Naming the cost (fuel, materials, insurance) makes the increase understandable. Customers see the same costs in their own lives.

03How do I work out the new price?

Add your extra cost per job to keep your profit in dollars, or divide your new cost by (1 − margin %) to keep your margin percentage. The calculator and our pricing guide show both.