CLEVELAND - Fuel prices might be falling, but it's not stopping companies in the business of delivery from charging extra for fuel. Despite the low cost at the pumps, some companies in the shipping industry are still raking in a fuel surcharge.
Northeast Ohio drivers are enjoying gas prices down to an average of $1.69 per gallon, with diesel prices down thirty percent from one year ago. Still, FedEx is charging a fuel surcharge of 4% for ground service and 2.25% for express service. UPS is charging 5.25% for ground service.
The companies said the rates are based on national diesel fuel averages and are adjusted monthly while base rates stay more stable. The surcharges are lower now than they were when fuel cost more.
“In other words, the cost of the fuel is passed to customers in the appropriate amount,” UPS spokesperson Dan Cardillo said in a statement provided to Fox 8 News.
Cardillo also said UPS is paying for more fuel due to a surge in e-commerce deliveries requiring drivers to drive more miles to spread out residential locations.
“The fuel surcharge is not solely based on the price at the pump. It is very important to understand that we are talking about the total cost of fuel,” Cardillo said in the statement.
So, while we can all fill up for less, for now it doesn't appear there's any end in sight for fuel surcharges.