Diesel price protection, explained for transportation lawyers
When diesel jumps, the freight contract decides who pays. Here’s what price protection is, and how a fixed rate can stay fixed.
Diesel in 2026
Diesel
Feb. 23, 2026
Diesel
Sept. 21, 2026
Record high
+$2.72 a gallon in 7 months
Sept. 21 was the highest weekly price since EIA’s records start in 1994 (not counting inflation).
Source: EIA weekly diesel prices
The contract decides who pays for a spike
| Compared | In the contract | Where a diesel rise lands |
|---|---|---|
| Fixed rate | No fuel clause | All of it stays with your client |
| Fuel surcharge | Passes part of a rise to the shipper | Some of it can stay with your client |
| Surcharge reset | Weekly, monthly or quarterly. Monthly is most common. | Until it resets, the rise stays with your client |
| Owner-operator lease | Sets how much surcharge the driver gets | Any part not passed on stays with the driver |
Source: OOIDA fuel surcharge guide; Fleet Equipment, on Magnus Technologies’ diesel index
OOIDA even tells carriers to put in writing that a rate is based on the fuel price the day it’s signed.
What a spike does to your clients, and your practice
About $53,600
Source: Fleet Equipment, on Magnus Technologies’ diesel index
When fuel outruns the contract, your client may eat the cost, ask to reopen the rate, or dispute the clause.
FreightWaves counted at least 16 trucking and delivery companies in bankruptcy from late August to Sept. 21, as diesel rose and other costs stayed high.
What price protection is, in plain words
Your client picks a cap on its diesel price. If what it pays averages above the cap over the period, Hedjee pays the difference. The fee per gallon, paid up front, is all it pays. It owes nothing back.
| Compared | A $1 jump, no protectionExample: 1,000 gallons, diesel $4.00 → $5.00. (It really rose 96¢ in one week of March 2026.) | A $1 jump, with HedjeeSame example, with a $4.00 cap and a 5¢-a-gallon fee |
|---|---|---|
| Extra fuel cost | $1,000 | $1,000 |
| Hedjee pays back | Nothing | $1,000 |
| Your client is out | $1,000 | $50, the fee |
| The freight rate | Reopen it, or eat the cost | Can stay as signed |
How it sits beside what your clients use
| Compared | What it does | With Hedjee |
|---|---|---|
| Freight contract | Sets the rate and the fuel clause | Stays as signed. Protection is between your client and Hedjee. |
| Fuel surcharge | Passes part of a rise to the shipper | Keep it. Hedjee pays on top of it. |
| Fuel card | Can take cents off each gallon | Keep it. Same cards, same stations. |
| Futures and swaps | How big companies like Sysco lock in diesel ahead of time | The same kind of protection, for fleets of any size |
Source: OOIDA fuel surcharge guide; Sysco 2026 annual report (10-K)
What you can do
You already read the contract. Where it leaves a diesel rise with your client, introduce Hedjee. We explain the protection; the legal advice and the client stay with you.
Explore how Hedjee could help your clients: bring one client’s contract terms to a free 20-minute call.