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Fuel Surcharge for Passenger Motor Carriers

Start of the Breadcrumb.Home \ Transportation & Safety \ Motor Carrier \ Fuel Surcharge

June 2012 Average Price of Gasoline = $3.85

Taxi Fuel Surcharge = $1.15
Airport Transfer & Paratransit Fuel Surcharge = $2.55

May 2012 Average Price of Gasoline = $4.04

Taxi Fuel Surcharge = $1.25
Airport Transfer & Paratransit Fuel Surcharge = $2.75

Docket No. S.P. 28209

Taxi companies, providers of paratransit transportation, and motor carriers providing transportation to and from airports, are permitted to add the fuel cost recovery charge to the cost of the trip in order to recover the unanticipated high price of gasoline.

Fuel Surcharge Determination

The amount of the fuel surcharge is determined by locating the average price of gasoline (posted at the top of this page) in the chart displayed below, and then select the corresponding fuel surcharge in the column for the respective type of transportation. The average price of fuel is posted on the third Friday of each month, with the effective date of the surcharge being the first day of the subsequent month.

For example, if the posted average price of gasoline is $3.85, the ninth line of the chart contains the price range for the $3.85 cost. The corresponding surcharge for taxicabs is $1.15, while the corresponding surcharge for paratransit and airport transfer transportation is $2.55. Those surcharges would be effective on the first day of the next month.

FUEL ($ per Gallon)

Taxicabs*

Paratransit &
Airport Transfers**

$1.40 - $1.49

$.05

$.05

$1.50 - $1.59

$.05

$.15

$1.60 - $1.69

$.10

$.25

$1.70 - $1.79

$.15

$.35

$1.80 - $1.89

$.20

$.45

$1.90 - $1.99

$.20

$.55

$2.00 - $2.09

$.25

$.70

$2.10 - $2.19

$.30

$.80

$2.20 - $2.29

$.35

$.90

$2.30 - $2.39

$.40

$1.00

$2.40 - $2.49

$.45

$1.10

$2.50 - $2.59

$.50

$1.20

$2.60 - $2.69

$.55

$1.30

$2.70 - $2.79

$.60

$1.40

$2.80 - $2.89

$.65

$1.50

$2.90 - $2.99

$.70

$1.60

$3.00 - $3.09

$.75

$1.70

$3.10 - $3.19

$.80

$1.80

$3.20 - $3.29

$.85

$1.95

$3.30 - $3.39

$.90

$2.05

$3.40 - $3.49

$.95

$2.15

$3.50 - $3.59

$1.00

$2.25

$3.60 - $3.69

$1.05

$2.35

$3.70 - $3.79

$1.10

$2.45

$3.80 - $3.89

$1.15

$2.55

$3.90 - $3.99

$1.20

$2.65

$4.00 - $4.09

$1.25

$2.75

$4.10 - $4.19

$1.30

$2.85

$4.20 - $4.29

$1.35

$2.95

$4.30 - $4.39

$1.40

$3.05

$4.40 - $4.49

$1.45

$3.15

$4.50 - $4.59

$1.50

$3.25

$4.60 - $4.69

$1.55

$3.35

$4.70 - $4.79

$1.60

$3.45

$4.80 - $4.89

$1.65

$3.55

$4.90 - $4.99

$1.70

$3.65

$5.00 - $5.09

$1.75

$3.75

$5.10 - $5.19

$1.80

$3.85

$5.20 - $5.29

$1.85

$3.95

$5.30 - $5.39

$1.90

$4.05

$5.40 - $5.49

$1.95

$4.15

$5.50 - $5.59

$2.00

$4.25

$5.60 - $5.69

$2.05

$4.35

$5.70 - $5.79

$2.10

$4.45

$5.80 - $5.89

$2.15

$4.55

$5.90 - $5.99

$2.20

$4.65

$6.00 - $6.09

$2.25

$4.75

$6.10 - $6.19

$2.30

$4.85

$6.20 - $6.29

$2.35

$4.95

$6.30 - $6.39

$2.40

$5.05

$6.40 - $6.49

$2.45

$5.15

$6.50 - $6.59

$2.50

$5.25

$6.60 - $6.69

$2.55

$5.35

$6.70 - $6.79

$2.60

$5.45

$6.80 - $6.89

$2.65

$5.55

$6.90 - $6.99

$2.70

$5.65

$7.00 - $7.09

$2.75

$5.75

* The amount is per trip.
** The amount is per paying passenger per trip.


How the Amounts for the Fuel Surcharge are Determined

The basis for the fuel surcharge is the premise that the cost of gasoline rose dramatically following the year 2003, when the average price for a gallon of unleaded regular gasoline was $1.35. The fuel surcharge compensates carriers for the difference in the current cost of gasoline for an average trip and the cost of gasoline for an average trip in 2003.

In its order of June 1, 2006, creating the Fuel Cost Recovery Surcharge, the Commission established that the following constants would be utilized in the formulas for determining the amounts for the surcharge:

  • The base price to be used is $1.35 per gallon of unleaded regular gasoline.
  • The average distance of a trip for taxicabs is 6.8 miles.
  • The average distance of a trip for paratransit and airport transfer carriers is 13.61 miles.
  • The average gasoline mileage for taxicabs is 15.04 miles per gallon.
  • The average gasoline mileage for paratransit and airport transfer carriers is 13.01 miles per gallon.

    • In determining the cost of gasoline per trip the following formulas are used:

  • Taxicab cost/trip = [(gas price)X (6.8 miles per trip)]÷ (15.04 miles per gallon)
  • Paratransit/Airport Transfer = [(gas price)X (13.61 miles/trip)]÷(13.01 miles/gallon)

    • The amounts in the chart are calculated determining the cost per trip for the costs of gasoline in the chart and subtracting the cost per trip at $1.35 per gallon. The difference was then rounded to the nearest nickel or dime.

    Carrier Notification of Fuel Surcharge

    Carriers shall notify the public by placing a notice in all vehicles, which shall read:

    The PA Public Utility Commission has authorized a fuel surcharge under Special Permission No. 28209. The surcharge has been extended and shall terminate on June 30, 2012. The current surcharge is (insert current charge here) per trip for each paying passenger.

    History of Fuel Surcharge

    On June 10, 2004 the Commission approved a temporary fuel surcharge of 30 cents per trip for each paying passenger for taxis. Paratransit and airport transfer carriers were allowed 70 cents per trip for each paying passenger. The temporary fuel surcharge was to last for one year.

    At a public meeting on June 2, 2005 , the PUC extended the temporary fuel surcharge for another year. The extension was granted in response to the Commission’s receipt of verbal and written requests from passenger motor carriers. Throughout the first year of the fuel surcharge the price of gasoline fluctuated, but the average price of gasoline for that period was $2.

    Due to the unanticipated increase in gasoline prices, the PUC approved an emergency order on Sept. 2, 2005, to raise the fuel surcharge to 70 cents for taxis and $1.55 for paratransit and airport transfer carriers.

    The fuel surcharge was then determined on a monthly basis until 2006, when the review became quarterly. At the June 1, 2006 public meeting, the PUC determined that on the third Friday of each month, the Commission will post the average cost of unleaded regular gasoline, which will determine the surcharge.  The Commission extended the surcharge at five public meetings: June 21, 2007, June 24, 2008, June 18, 2009, June 16, 2010 and then again on June 9, 2011.

    The fuel surcharge is scheduled to terminate June 30, 2012.

     
     

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