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UPS Domestic Fuel Surcharge Update

Effective Date: March 9, 2026 (announced on March 5, 2026)
Reviewed & Verified by:
Matt Bohn

Cost + Service Impact Analysis

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Summary

UPS updated its U.S. domestic fuel surcharge tables effective March 9, 2026, with surcharges continuing to adjust weekly based on energy price indexes. Ground services (UPS Ground and UPS Ground Saver) are tied to the U.S. EIA National Average On-Highway Diesel Fuel Price, with surcharges ranging from 21.00% to 24.00% within the published fuel price bands, while domestic air services use the U.S. Gulf Coast jet fuel index, with surcharges ranging from 20.75% to 23.75%. This update represents a 1% increase for both ground and air shipments vs the previous table. These fuel surcharges apply to applicable transportation and certain related charges across the listed UPS ground and air services.

Analysis

UPS has updated its domestic fuel surcharge structure for both ground and air services, increasing fuel percentages by 1% and reinforcing its index-based approach to managing fuel cost volatility. Ground fuel surcharges are tied to the U.S. EIA National Average On-Highway Diesel Fuel Price, while air surcharges track the U.S. Gulf Coast kerosene-type jet fuel index, with both adjusted weekly to reflect energy market conditions. This structure allows UPS to align transportation pricing more closely with real-time fuel costs, potentially introducing ongoing variability in domestic shipping rates.

Impact on Shippers

Shippers using UPS domestic ground and air services may see week-to-week fluctuations in transportation costs as fuel surcharge percentages adjust alongside diesel and jet fuel prices. Because these surcharges apply to transportation and certain accessorial charges, businesses with high domestic parcel volumes or time-sensitive air shipments may experience noticeable cost variability tied to energy market trends. Shippers will see a 1% increase in fuel costs for the same packages with this update.

Key Takeaways

💡 Fuel surcharge tables updated effective March 9, 2026
💡 Ground fuel surcharge ranges from 21.00%–24.00%, indexed to EIA U.S. On-Highway Diesel Fuel Price
💡 Domestic air fuel surcharge ranges from 20.75%–23.75%, indexed to U.S. Gulf Coast jet fuel prices
💡 Update represents a 1% increase in the fuel surcharge structure
💡 Surcharges update weekly and apply to applicable transportation and certain accessorial charges
💡 Applies across UPS Ground®, Ground Saver®, Basic, Hundredweight Ground, and UPS domestic air services

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