UPS & FedEx Fuel Surcharge 2026: How It's Calculated & What You Pay
UPS and FedEx fuel surcharges update every week based on EIA diesel prices — and the carriers raised their surcharge tables twice in 2025–2026, adding 1% each time. Here's exactly how it works and what it costs.
⚡ Current rates (March 2026)
How the Fuel Surcharge Table Works
Both UPS and FedEx use a lookup table approach: each week's diesel price maps to a specific surcharge percentage. The table has bands — typically $0.09 wide for UPS above $3.55/gallon — and the surcharge increments 0.25% with each band.
Here's a simplified example of how the UPS Ground table works at current fuel prices:
| Diesel price range ($/gal) | UPS Ground surcharge | On $100 base rate | On $250 base rate |
|---|---|---|---|
| $3.37 – $3.45 | 21.00% | $21.00 | $52.50 |
| $3.46 – $3.54 | 21.25% | $21.25 | $53.13 |
| $3.55 – $3.63 | 21.50% | $21.50 | $53.75 |
| $3.64 – $3.72 | 21.75% | $21.75 | $54.38 |
| $3.73 – $3.81 | 22.00% | $22.00 | $55.00 |
| $3.82 – $3.90 | 22.25% | $22.25 | $55.63 |
| $3.91 – $3.99 | 22.50% | $22.50 | $56.25 |
The fuel surcharge is applied as a percentage of base transportation charges — not the total invoice. Accessorial charges like residential delivery and additional handling fees are typically included in the base for surcharge calculation purposes.
What Changed in 2025 and 2026
The diesel price changes weekly and moves the surcharge within the table. But in 2025 and 2026, both carriers did something different — they changed the table itself, shifting every surcharge band upward by 1% regardless of where diesel was trading.
| Date | Change | Impact at $3.85 diesel |
|---|---|---|
| Dec 1, 2025 | FedEx table +1% across all bands | +1% to every shipment |
| Jan 5, 2026 | UPS table +1% across all bands | +1% to every shipment |
| Mar 9, 2026 | UPS table +1% again (ground & air) | +1% to every shipment |
The result: a shipper paying 20.75% UPS Ground surcharge in late 2024 is now paying 22.75% at the same diesel price — a 9.6% increase in surcharge costs with no change in diesel. On a shipping operation spending $50,000/month in base rates, that's an extra $1,000/month in fuel surcharges that appeared with no diesel price justification.
UPS vs FedEx — Which Is Higher?
At most diesel price points in 2026, UPS Ground runs slightly higher than FedEx Ground by about 0.50%. The gap narrows and reverses at some price points. Both update on different days so there are short windows mid-week where one is using a newer price than the other.
At $3.85/gallon diesel (early 2026)
On a $150 base rate: UPS = $34.13 surcharge · FedEx = $33.38 surcharge — $0.75 difference per shipment
How Much Is the Fuel Surcharge Costing You?
Most shippers underestimate fuel surcharge impact because they see it as a percentage. In absolute dollars on a real shipping operation it's significant:
| Monthly shipping spend (base) | At 22% surcharge | Annual surcharge cost |
|---|---|---|
| $5,000/month | $1,100/month | $13,200/year |
| $20,000/month | $4,400/month | $52,800/year |
| $100,000/month | $22,000/month | $264,000/year |
Use the live fuel surcharge tracker to calculate your exact monthly and annual cost based on your base shipping rate and current week's surcharge.
See This Week's Live Rate
Current UPS and FedEx fuel surcharge percentages, pulled automatically from the EIA diesel price. Updated every Monday.
Open Live Fuel Surcharge Tracker →Frequently Asked Questions
How is the UPS fuel surcharge calculated?
UPS uses the prior week's EIA national average on-highway diesel price. Each diesel price band maps to a percentage in UPS's table. Above $3.55/gallon the surcharge increments 0.25% per $0.09 of diesel price. The result is applied as a percentage of your base transportation charge.
What is the UPS fuel surcharge for 2026?
Under the March 2026 table, UPS Ground domestic surcharges range 21.00%–24.00% depending on that week's diesel price. UPS raised its table twice since late 2025, adding 1% each time. See the live tracker for this week's exact rate.
Why did my fuel surcharge go up when diesel didn't?
Carriers update their surcharge tables — the formulas that convert diesel prices into percentages — separately from diesel price movements. UPS updated its table in January 2026 and March 2026, adding 1% each time. Surcharges increase even when fuel prices stay flat when these table changes occur.
Is the FedEx fuel surcharge the same as UPS?
Close but not identical. Same EIA diesel index, different tables, different update days (UPS Mondays, FedEx Wednesdays). At $3.85 diesel in early 2026: UPS Ground is 22.75%, FedEx Ground is approximately 22.25%. The $0.50 gap is small per shipment but material at high volumes.