Quick Summary
- – The U.S.-Israel war against Iran (started Feb 2026) disrupted the Strait of Hormuz, cutting ~20% of global oil supply
- – Canadian diesel prices hit $2.19/litre by mid-March 2026 — the highest since 2022
- – BC’s fuel surcharge rose from 22% to 30% between February and March
- – Fuel surcharges (FSC) are a variable fee carriers use to pass diesel costs to shippers — they move frequently, sometimes weekly
- – Shippers should consolidate loads, revisit freight agreements, and plan for continued elevated costs
If you’ve received a freight invoice lately and noticed your fuel surcharge (FSC) climbing, you’re not imagining it. Canadian diesel prices have surged sharply over the past several weeks, and the trucking industry — and the businesses that rely on it — are feeling it directly.
Here’s what’s happening and what it means for your shipments.
What's Driving Diesel Prices Up?
The trigger is geopolitical. The ongoing U.S.-Israel war against Iran, which began in late February 2026, has caused the biggest disruption to global oil supplies in years. Iran has effectively shut down most tanker traffic through the Strait of Hormuz — the narrow waterway through which approximately 20% of the world’s oil supply normally flows. With that supply suddenly constrained, oil prices jumped more than 40%, and diesel prices followed.
In Canada, the average retail price of diesel reached $2.19 per litre by mid-March — the highest since Russia’s invasion of Ukraine in 2022 — and it has continued to climb since. In parts of BC, diesel has risen 45 to 52 cents per litre compared to where it sat at the start of the conflict. In Toronto, filling a standard long-haul truck that holds roughly 1,000 litres now costs around $2,300 — about $700 more than before the war began.
What Is a Fuel Surcharge, and How Is It Calculated?
A fuel surcharge is a variable fee that carriers add to base freight rates to account for the cost of diesel. Because fuel is one of the largest and most unpredictable expenses in trucking — accounting for up to 30% of total transportation costs — carriers use FSCs to avoid building worst-case fuel costs permanently into their rates.
In Canada, FSCs are typically calculated using a benchmark diesel price, such as the weekly index published by the Freight Carriers Association of Canada or, here in BC, the reference price reported by Kalibrate. When that benchmark rises, so does your surcharge.
The BC Container Trucking Commissioner set the FSC at 22% for January and February, rising to 30% for March — a significant jump that reflects just how dramatically diesel costs have moved.
Some carriers update their FSC weekly based on a rolling average of diesel prices. Others adjust monthly. The result is that shippers are seeing these increases hit their invoices in real time.
Why Fuel Surcharges Matter Beyond the Line Item
The impact of surging diesel prices extends beyond the surcharge itself. Some carriers are also increasing base freight rates, particularly on longer-haul routes. Reports from Ontario indicate that the cost to haul a load from Toronto to California jumped from roughly $5,000 to $7,000 in just a matter of weeks.
Some carriers are now reviewing and revising their pricing every seven days — simply because the market is moving too fast to plan further ahead.
For shippers, this means freight budgets set earlier in the year may no longer reflect current market reality. It’s worth revisiting your cost assumptions if you’re planning shipments over the next several months.
What Can Shippers Do About Fuel Surcharges in Canada 2026?
You can’t control geopolitics or oil markets, but there are a few practical things worth doing:
Review your freight agreements. Some contracts have fuel surcharge caps or fixed FSC structures. Understand exactly how your carrier calculates and applies the surcharge, so there are no surprises on your invoice.
Consolidate where possible. Consolidating shipments into fewer, fuller loads reduces the number of FSC-bearing moves you’re paying for. LTL shipments each carry their own surcharge; combining them into FTL where the volumes work can reduce overall cost.
Plan ahead. Analysts aren’t expecting relief in the near term. As long as the conflict continues and the Strait of Hormuz remains disrupted, fuel prices are likely to stay elevated. Building some buffer into your lead times and logistics costs now is prudent.
Talk to your freight partner. A good freight broker relationship means you should be able to have an honest conversation about current market conditions, what your options are, and whether there are routing or mode changes that could reduce your exposure.
How Rolls Right Is Handling This
We understand that rising freight costs create real pressure on your business. We’re committed to being transparent about how fuel surcharges are applied to your shipments and to helping you find the most cost-effective solutions available in the current market.
If you have questions about your current FSC or want to talk through your freight strategy, our team is here to help.
Fuel surcharges vary by carrier and region, but they have risen sharply in early 2026 due to the oil supply disruption caused by the Iran conflict. In BC, the container trucking FSC rose to 30% in March 2026, up from 22% in January and February. Always check with your specific carrier for the rate applied to your shipment.
The main driver is the conflict involving Iran, which disrupted tanker traffic through the Strait of Hormuz — a critical chokepoint for global oil supply. This caused a rapid spike in crude oil and diesel prices across North America, which carriers pass on through the FSC.
Most Canadian carriers calculate FSC using a benchmark diesel price — either the Freight Carriers Association of Canada (FCA) index or a regional reference like Kalibrate in BC. The surcharge is expressed as a percentage of your base freight rate and adjusts weekly or monthly as diesel prices move.
