LearnInput costs
How can a small business protect itself from diesel price spikes?
Where customers accept it, a fuel surcharge tied to the weekly US diesel price passes increases on to them. A fixed-price program from a fuel supplier locks a per-gallon price for a set volume. Diesel futures and options through a broker can offset a rise, but futures need cash for margin. An event contract can pay out if a published diesel price averages above a ceiling you choose. Its upfront cost isn’t returned if prices stay low.
What are your options?
| Option | What it covers | How it pays | What you pay upfront | Main limit |
|---|---|---|---|---|
| Fuel surcharge indexed to the EIA diesel price | Fuel cost increases on work where the customer accepts the surcharge. | The customer pays more as the weekly EIA diesel price rises, using the agreed schedule. | Nothing. It costs negotiating time. | Customers must agree. Your fuel price can differ from the index, and locked rates may not allow it. |
| Fixed-price fuel program from a supplier | A set number of gallons from one supplier, at one price, for a set period. | You pay the fixed price on each delivery. | Usually built into the per-gallon price. Terms vary by supplier. | You must buy the gallons you committed to, and you pay the fixed price even if diesel falls. |
| Diesel futures and options through a broker | Price moves in NY Harbor ULSD futures, in 42,000-gallon contracts. | Gains on the position offset higher fuel costs. Losses offset the savings when prices fall. | Margin deposits for futures, or a premium for options, plus broker fees. | Margin calls can strain cash. The New York Harbor wholesale price differs from your local fuel price. |
| Event contracts set up by Crux | A rise in a widely published diesel price above a ceiling you choose. | If the agreed event happens, the contract pays out under those terms. There’s no claims process. | An upfront cost you see before you approve anything. | Follows the published price, not your fuel receipts. The upfront cost isn’t returned if prices stay low. |
| Buying event contracts yourself on an exchange | Only the price levels, dates and terms an exchange already lists, which may not include diesel. | The contract pays out under the exchange’s terms if the listed outcome happens. | The contract price, plus any fees. | Listed terms may not match your fuel use. You choose, buy and manage the contracts yourself. |
| Do nothing (absorb the cost) | Nothing. The business keeps all the risk. | There is no payout. Higher fuel costs come out of your margin. | Nothing. | A spike after you agree a rate means each load or job earns you less. |
Do fuel surcharges cover it?
Often, but not fully. The US Energy Information Administration (EIA) publishes a weekly US average on-highway diesel price, plus prices for each region. FreightWaves reports that this national average is the basis for most fuel surcharges in trucking and other transportation services.
A surcharge works when your customer agrees to it. The schedule in your contract sets how much your price changes as the index moves, so the customer pays more when diesel rises.
Gaps remain:
- A rate you have already locked without a surcharge gets no help.
- Your fuel price can differ from the national average, for example in a region with higher prices.
- A surcharge that resets on a schedule can trail a sudden price jump.
- Some customers push back on surcharges or choose a competitor with a lower all-in price.
What is a fixed-price fuel program?
Some fuel suppliers sell diesel at a fixed price for a set volume and period. As one supplier describes it, a business orders a set amount of diesel, delivered over 12 months, and each delivery costs the same fixed price whether the market price goes up or down.
The strength is certainty: you know your fuel cost per gallon for the period. The same supplier lists the limits. You stay locked into the higher price if diesel falls and stays down, and you must buy the gallons you committed to even if you don’t use them. A program also covers only fuel from that supplier, which may not suit a fleet that fuels in many places.
Can a small business use diesel futures?
Yes, through a futures broker, if the business has the cash to support the position. CME Group lists a NY Harbor ULSD futures contract on ultra-low sulfur diesel. Each contract covers 42,000 gallons.
The CFTC explains that futures margin is a performance bond, typically between 2% and 10% of the contract’s value, and that each position is marked to market every day. If diesel falls far enough, you must add cash to the account, even while your fuel bill is falling too. Options on futures work differently: the buyer pays a premium up front.
The contract follows wholesale diesel in New York Harbor, not the price at your pump, so gains on the position may not match your fuel costs.
How does an event contract cap a fuel cost?
Set a cost ceiling your business can absorb. We set up protection around that limit. If the agreed event happens, the contract pays out under those terms. If prices fall instead, you buy at the lower market price. The contract doesn’t pay out, and the upfront cost isn’t returned.
You keep buying fuel the way you do today. Protection is arranged separately from your purchasing.
You tell us what could hurt the business. We set up the protection and show you the terms and price. You approve it through an account in your business’s name that we help you open. A payout follows the agreed event, so there’s no claims process. Tell us what could raise your costs and we’ll confirm what we can protect.
A worked example
Your rate is locked. Your fuel bill isn’t. Your rate assumed $5.50/gal diesel. You chose an all-in ceiling of $6.00/gal, including protection.
| If diesel averages | Contract payout | What it means |
|---|---|---|
| $5.75/gal | $0 | Your diesel cost is $5.85/gal, including protection. That’s below your ceiling. |
| $6.50/gal | $300,000 | Your diesel cost stays at $6.00/gal, including protection. |
| $7.00/gal | $550,000 | Your diesel cost stays at $6.00/gal, including protection. |
Protection cost: $50,000 upfront
Assumes 500,000 gal of diesel over the contract. Illustrative example. Terms and pricing agreed upfront.
What are the limits?
- If the agreed event doesn’t happen, the contract doesn’t pay out, and the upfront cost isn’t returned.
- The agreed event may not match your actual loss. A contract pays on the measured outcome, not on your own costs or sales. This gap is called basis risk.
- The payout follows the contract terms and the agreed measurement source, such as a published price or a named weather station.
- The payout follows the agreed average price over the agreed period. A short spike that fades before the period ends may pay little or nothing.
- Protection covers the gallons and dates in the terms. If your routes grow or the contract runs longer, the extra fuel isn’t covered.
When is Crux not a fit?
- Your customers accept a fuel surcharge that tracks the EIA price, so they carry most of the risk.
- A supplier offers a fixed-price program for the gallons and period you need, at a price you accept.
- You already use a futures broker and have the cash to meet margin calls.
- Fuel is a small share of your costs, so a price spike wouldn’t threaten your margin.
Related guides
Sources
- Gasoline and Diesel Fuel Update, US Energy Information Administration, October 6, 2026.
- Weekly release of benchmark diesel price shifts to Tuesday morning, FreightWaves, April 6, 2025.
- Is a Fixed Price Diesel Supply Contract Right for Your Business?, Hart Fueling Service, October 2026.
- NY Harbor ULSD Futures Contract Specs, CME Group, October 2026.
- Economic Purpose of Futures Markets and How They Work, Commodity Futures Trading Commission, October 2026.
This guide is general education. It is not an offer, and it is not financial, legal or tax advice. Terms, prices and availability depend on the contract.