Fuel Surcharge and GRI Calculation Model for the Trucking Industry Amidst A Volatile Fuel Environment
Fuel and diesel volatility is no longer an exception in container trucking. It is part of the operating environment.
Over the past six months, diesel prices at Singapore retail petrol kiosks have risen sharply, peaked at sustained highs, and only partially eased. For businesses moving containers through Singapore, this has direct implications for trucking costs, planning assumptions, and the way haulage pricing needs to be structured.
At Haulio, we believe pricing changes should be transparent, data-backed, and easier for customers to plan around. As market conditions evolve, shippers need clearer cost signals and more predictable mechanisms. That is why we updated our Fuel surcharge and General Rate Increase, or GRI model in April 2026.
This was not simply a pricing adjustment. It was a step towards a more structured framework for managing fuel-related cost volatility in container haulage.
Diesel Prices Have Eased in Recent Weeks, But They Have Not Normalised
The diesel trend in Singapore over the past six months shows why a more structured approach is needed.
In January 2026, diesel pump prices across major petrol brands were around S$2.55 to S$2.65 per litre. Prices then rose steadily through February and March, crossed S$4.00 per litre by late March and early April, and reached approximately S$4.60 to S$4.70 per litre in April and early May.
(Image taken from: motorist.sg, as of 8 July 2026)
Although prices have since eased, they remain elevated. As of early July, diesel prices are still around S$3.90 to S$4.05 per litre, depending on the petrol brand.
This matters because the market is not dealing with a short-lived spike. It is dealing with a higher and more volatile baseline than it did at the start of the year.
For container trucking, that has several consequences:
- diesel remains a meaningful source of cost pressure
- pricing mechanisms need to be stable enough to respond to volatility without constant ad hoc changes and the need to negotiate for repricing
- shippers in the industry are blinded and uninformed on the costs and reactive to what they read on the news
Why the Industry Needs a Better Pricing Model
Container trucking has always had to absorb variability. Diesel, labour, asset ownership, maintenance, compliance, and utilisation all shift over time. But when diesel prices rise quickly and stay elevated for months, the industry cannot rely on pricing structures built for more stable cost conditions.
In this type of environment, two problems often emerge.
The first is pricing opacity. Customers understand that costs are rising, but not always how those changes are being applied or when they may change again.
The second is pricing instability. If surcharge adjustments are too variable or too discretionary, both customers and operators find it harder to plan effectively.
The answer is not more complexity. It is better structure.
A more disciplined pricing approach helps customers understand how charges are applied, while giving operators a clearer framework for responding to sustained cost pressure.
Fuel Surcharge and GRI Need to Be Treated Differently
A better pricing model starts with recognising that fuel surcharge and GRI do different jobs.
A fuel surcharge is designed to account for movements in fuel prices. It reflects changes in diesel cost conditions over time.
A General Rate Increase, or GRI, reflects something broader. Fuel may be one of the drivers, but it sits alongside other pressures such as manpower, vehicle financing, insurance, maintenance, and the day-to-day realities of container movement in Singapore.
This distinction matters because it creates better pricing logic.
If all cost changes are treated as diesel fluctuations, pricing becomes too narrow and reactive. If all cost changes are folded into permanent base rate adjustments, pricing loses flexibility.
A more mature pricing structure needs both:
- a clear mechanism for fuel-linked movements
- a structured approach to broader cost-based rate adjustments
That is the approach Haulio has taken and we hope for the rest of the industry to reference against.
Haulio’s Updated Model: Structured, Transparent, and Data-Backed
Effective from 20 April 2026, Haulio implemented an updated pricing model to give customers greater clarity, consistency, and predictability.
The revised framework has two core components.
- Fixed Fuel Surcharge (FFS)
Haulio replaced the previous Variable Fuel Surcharge (VFS) with a Fixed Fuel Surcharge (FFS) model.
Under this structure:
- no FFS applies when the average fuel price is S$1.79/L and below
- FFS applies when the average fuel price is S$1.80/L and above
The applicable surcharge varies by movement type and service area, including:
- 1-way
- Jurong Area
- Out of Jurong Area
Importantly, the model uses the preceding week’s average fuel price, updated every Monday on our platform.
This gives customers a more stable and understandable method for anticipating charges. Rather than reacting to daily price changes, the FFS model uses a consistent weekly benchmark.
- Tiered General Rate Increase (GRI)
In parallel, Haulio updated its GRI structure into a tiered model based on diesel price bands.
Under the revised model:
- no GRI applies when average fuel price is below S$2.80/L
- GRI applies when average fuel price is S$2.80/L and above
The diesel price bands benchmarked against the weekly average of the top 4 retail brands are:
- S$2.80/L to S$3.99/L
- S$4.00/L to S$5.49/L
- S$5.50/L to S$6.99/L
The model also includes an upper threshold of up to S$7.00/L, allowing the framework to respond if market volatility intensifies further.
Additional application rules include:
- only one FFS and one GRI apply for double mounting trips
- for any additional one-way request under the same Job ID, 50% of the applicable GRI is charged
This structure reduces the need for repeated ad hoc revisions while giving customers a more transparent basis for forecasting transport costs.
What the Current Market Data Tells Us
When current diesel prices in Singapore are compared against Haulio’s pricing thresholds, the rationale for this model becomes clear.
With current weekly diesel prices averaging S$3.90 to S$4.05 per litre, the market is operating around the upper end of the first GRI band or the lower end of the second, depending on the weekly average.
That means both the FFS and GRI remain relevant in current conditions.
More importantly, it shows that the market is still operating materially above the levels at which no surcharge or GRI would apply.
Why Clearer Pricing Structures Matter
A fragmented trucking market can easily lead to rate adjustments that are difficult to interpret and harder to plan around. That creates friction across the supply chain:
- shippers may find it harder to budget accurately
- operators may face challenges recovering costs sustainably
- procurement teams may spend more time managing exceptions
- planning can become more reactive than strategic
With a band-based FFS and GRI framework, Haulio is aiming to take a more structured approach to fuel-related pricing changes. Rather than treating cost movements as isolated events, the objective is to use a model that reflects market conditions, improves visibility, and supports more informed planning for both customers and transport partners.
This is particularly relevant in container logistics, where customers increasingly expect greater transparency and operational clarity in haulage, just as they do across other parts of the supply chain.
Toward a More Transparent Pricing Approach
As fuel and operating costs become more volatile, there is a growing need for clearer and more structured pricing mechanisms in container trucking.
Haulio’s move from a variable surcharge approach to a fixed, band-based framework is intended to support that need. It is a practical step toward making trucking cost management more transparent, easier to understand, and more predictable in a changing market.
More broadly, the industry will benefit from:
- clearer pricing frameworks
- stronger linkage between market data and commercial mechanisms
- fewer ad hoc adjustments
- better planning confidence for both shippers and operators
Ultimately, better pricing structures support better decision-making across the supply chain.
What This Means for Customers
For customers planning container trucking in Singapore, the key takeaway is straightforward: fuel-linked trucking costs should now be planned for as part of the operating baseline, not treated as a temporary exception.
That does not mean costs will only move in one direction. It means pricing should be understood through a clearer framework.
A structured FFS and GRI model helps customers:
- understand when charges apply
- forecast likely cost exposure based on diesel price bands
- separate fuel-linked changes from broader rate movements
- reduce uncertainty in budgeting and planning
This is particularly relevant for businesses with recurring import, export, and one-way trucking needs, where small per-trip changes can add up quickly across higher shipment volumes.
Customers do not just need rates. They also need confidence in how those rates are determined.
Moving Forward with Greater Clarity
Fuel volatility is likely to remain part of the operating environment for some time. What businesses can control is how they respond to it.
At Haulio, our approach is to anchor pricing decisions in data, formalise the mechanisms that matter, and give customers clearer visibility into how cost changes are applied.
Our updated Fixed Fuel Surcharge and tiered GRI model is part of that commitment.
If you would like to better understand how the revised framework applies to your shipments, rate card, or logistics planning, our team is happy to help. Contact us at hello@haulio.io.
