Some
services make customers pay for the amount of fuel that would be used
to complete the service such as airlines. This is known as “fuel
surcharge,” possibly one of few instances where the cost of fuel is
passed onto the customers. Unfortunately, as far as customer
satisfaction is concerned, this is among the least understood aspects
of pricing goods and services.
Suppose
you like to buy cheese from Wisconsin, but you live in neighboring
Minnesota. Trucks or delivery vehicles have to make the long trip
across the border to deliver the cheese to your doorstep, if not to
your local grocery store. This is likely the reason for Wisconsin
cheese being more affordable in Wisconsin than in the rest of the
country. You’re paying for the logistics.
It’s
unclear how much fuel surcharges affect food prices, but this is
basically how fuel surcharges work. Many people don’t like the
idea, but businesses run on black gold. If the average cost per mile
is pegged at $1.00 for truckers, at least 35 cents go to making sure
the truck is all tanked up.
Onsite
fuel services reduce fuel surcharges by bringing the fuel to the
fleet instead of the other way around. Trucks and logistics vehicles
can leave the premises with a full tank instead of traveling to the
nearest gas station to do so. If the truck has some gas left, onsite
refueling will fill the remainder without the truck going anywhere.
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