Is It Time to Revisit Gasoline Surcharges (or Alternatives)?

It’s not breaking news for commercial AV integrators that gasoline prices are way, way up. Ever since the war with Iran started, oil prices have surged dramatically. Specifically, U.S. gasoline prices are up 33% in the past month, from an average of about $3 per gallon to $4 per gallon according to AAA. In California, the average price per gallon is now nearing $6 per gallon.

So, is it time to add a gas surcharge for your installation and service truck rolls? The airlines are doing it. Your local trash company is doing it. And in the irony of all ironies, home delivery heating oil and propane companies are doing it.

The gasoline surcharge dilemma is not new. It was a topic of debate back in 2008 when a spike in worldwide demand driven by China and stagnant oil production in the Middle East led to oil hitting its record high of $147 per barrel. In 2022, it was the Russian invasion of Ukraine that led to another spike. In some businesses, those “temporary” surcharges never went away!

But for many integrators, there is hesitation to “nickel and dime” clients with a gasoline surcharge, especially ones who are already paying you for a six-figure installation. That hesitation is understandable. It’s also expensive. The universal truth is that if you do nothing, you are eating into your profit on every truck roll. So, what can you do?

The Case for a Temporary Gasoline Surcharge

A truck roll isn’t just labor, it’s fuel, vehicle wear, insurance and time. When gas spikes 33% in a month, that cost doesn’t magically disappear.

A temporary surcharge can:

• Protect margins immediately without reworking your entire pricing model
• Create visibility into real cost pressures
• Buy time while you adjust long-term pricing

But execution matters. Poorly handled, it feels like a cash grab. If you roll this out like a surprise fee, expect pushback. Clients won’t love it, but they’ll accept it. Especially when the alternative is reduced service quality.

Here are four ways to keep it simple, direct, and temporary:

1. Lead with transparency -- Explain that fuel costs have risen sharply and materially impact service delivery.
2. Frame it as temporary and conditional -- Tie the surcharge to market conditions. Example: “When fuel prices stabilize, this charge will be removed.”
3. Keep it modest and predictable -- Structure it as a flat fee per visit versus some sort of fluctuating percentage. No customer wants to feel like they’re watching the gas pump tick during billing.
4. Communicate proactively, not at invoice time -- Email clients and add the proper language to your D-Tools proposals.

Stronger Alternatives to Line-Item Surcharges

Let’s be honest… if your profitability depends on a $15 gas fee, your pricing model is probably off. Fuel is just one piece of the truck roll equation, so take this opportunity to evaluate and fix your margins long term by skipping the “gas fee” and rethinking how you price service.

Here are five alternatives to gas surcharges:

1. Build True Costs into Your Rates -- Most integrators underprice labor because they ignore the full cost of a truck roll. When you factor in overhead, vehicles, and utilization, your real hourly rate should be far higher than wages plus gas. Raise rates accordingly.
2. Use Flat Trip Fees – Instead of adding a gas fee, set a standard service-call fee covers travel without itemizing fuel. It’s cleaner and easier to explain. If you cover a larger territory, use zones such as local, regional and extended.
3. Lean Into Service Plans and RMR -- Recurring revenue smooths volatility. Instead of chasing fuel costs, you average them. Service agreements that include truck rolls improve predictability, reduce billing friction and increase customer loyalty.
4. Reduce Truck Rolls Altogether -- The best fuel strategy is to not roll a truck in the first place. Using remote monitoring, power management and diagnostics let you solve problems without rolling a truck.
5. Tighten Fleet and Routing Discipline -- Before charging customers more, make sure you’re not wasting miles. How can you schedule smarter and route the vehicles more efficiently?

D-Tools Cloud, the modern operating system for integrators, allows you to easily set your trip fees and build them into your proposals and service calls. Now might be a good time to revisit those if you need immediate relief, but make sure to communicate it clearly and remove it when conditions improve.