USCustomer levies and surcharges
Prevent revenue loss by managing fuel levies and surcharges
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 diesel fuel price changes and shifting fuel market conditions to protect your revenue long term.
Before
Transvirtual
vs.
- Manual rate calculations lead to errors
- Updating rates is slow and time-consuming
- Limited options for custom pricing setups
- Missed charges result in revenue losses
- Rates lack clarity and confuse clients
- Tracking profit can be difficult and time-consuming
After
Transvirtual
- Automated rates ensure accuracy every time
- Update rates instantly with just a few clicks
- Flexible pricing tailored to clients or jobs
- Accurate rates eliminate revenue leakage.
- Transparent rates build client confidence.
- Detailed reports provide pricing insights.
Auto-calculate fuel surcharges with precision, saving time and preventing revenue loss
Flexible Customization
Adapt levies to suit your needs.
Transvirtual lets you easily create and tailor levies and surcharges to manage fuel fluctuations at every level. These can be based on percentages or flat rates, or linked to specific dates or date ranges, giving you full control over how you manage fuel costs across your customer base.
Auto Calculate Fuel Surcharges
Manage fuel fluctuations
Make sure your transport business isn’t underquoting by using base rates and fuel surcharges to provide accurate, competitive quotes. As diesel fuel prices shift, Transvirtual recalculates your fuel surcharge in real-time, keeping your rates aligned with the current fuel market
Set up customer levies
Tailor levies
Transvirtual lets you easily create and tailor fuel levies and surcharges to match how your business manages fuel costs. These can be based on percentages or flat rates, or linked to specific dates or date ranges. This makes fuel tax compliance simple and scalable.
Tailored to Your Business
Our system adjusts to your business
Apply levies per shipment or invoice using either percentages or flat rates. Factor in the average price of motor fuel, set a base fuel price threshold, and add extra fees like account charges and more. We provide the fuel tax software 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. These average price figures form the backbone of reliable fuel surcharge calculations.
This practice ensures that freight rates remain in sync with the ever-changing fuel market, protecting you from revenue loss over the long term.
Implementing Transparent Fuel Surcharge Policies
Ensure transparency with clients by clearly communicating your fuel levy policy, including how fuel surcharge calculations are made, which base fuel price benchmarks are used, effective dates, and pricing impacts on their invoices.
Update contracts as needed to incorporate fuel levy provisions and fuel tax compliance requirements.
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 Transportation 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.
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