Waste & Recycling
June 10, 2022
Why Am I Being Charged Fuel Surcharges on my Waste Bill?
Are you seeing an increase on your monthly waste hauling invoice? Are you paying almost double your base rate? These increases are very common with fuel rates at an all time high, and they can result in inconsistencies on your bill each month. Below, we will dive in to see what the Fuel Surcharge actually is, how it is calculated, and what you can do.
What Exactly Are These “Extra Fees”?
As if seeing an unfamiliar charge on your invoice isn’t frustrating enough, trying to get answers on what exactly these fees are is even more frustrating. If you visit the company’s website to try and research, you’ll likely be met with long-winded explanations containing big words and fancy jargon that will inevitably create more confusion.
What is a Fuel Surcharge?
Arguably one of the most common of the “extra fees”, this charge likely fluctuates month-over-month on your invoice, as it tracks with the up and down nature of fuel prices. Thus, if fuel goes up, so will your surcharge. Our competitors implement fuel surcharges to offset the cost of fuel and help them maintain operating margins. It’s important to note that fuel surcharges are not related to the costs of servicing your account.
How are Fuel Surcharges Calculated?
In Canada, fuel surcharge rates are based on the national average price of diesel fuel. If you want to dive deeper, you can visit Natural Resources Canada for more information. Once the Canadian retail price is determined, companies will then decide what amount will be applied to your monthly invoice, before tax.
Below is a quick illustration of what your fuel surcharge fees could be based on online research.
For example, if your base rate is $1000.00 a month and gas prices are at $1.75, your fuel surcharge would work out to 35.98% or $359.80. This creates unknowns on your bill month to month, causing budget uncertainty.
What Can You Do?
The best thing you can do for your business or multi family home is try to lock in any rates with your current provider or even better yet, get fixed rate pricing for your overall waste fee. That way, you will always know what you are paying each month, regardless of what is happening in the economy.