Fuel Hedging Calculator — Fleet Fuel Price Risk Management
Calculate the impact of fuel price hedging on your fleet's operating cost. Compare fixed-price hedging vs spot exposure and quantify downside protection.
⛽ Fuel Hedging Cost Calculator
How to Use This Calculator
- Enter fleet and mileage data — determines total annual fuel consumption.
- Enter hedge price — the price at which you can lock in future fuel supply.
- Enter a worst-case scenario — to quantify how much hedging protects you if prices spike.
Worked Example
20 trucks, 120K miles, 6.5 MPG, $3.85 current, $4.10 hedge at 70%, $5.00 worst case.
- Total gallons: 369,231/year
- Current cost: $1,421,539/yr
- Hedge premium at $4.10: $92,308/yr above current
- At $5.00 worst case: hedging saves $176,231
The hedge premium of $92K buys $176K of protection at $5 diesel. Risk appetite determines whether that's worth it — contract freight shippers with locked rates often hedge regardless.
Frequently Asked Questions
Fixed-price fuel supply contracts with fuel card networks, NYMEX heating oil futures, fuel swaps via commodity brokers, or bulk fuel purchasing and storage. Most small-mid fleets use fixed-price fuel card programs.
When fuel exceeds 25% of operating cost, when contract freight rates lock in for 6–12 months creating price exposure, and when you have sufficient volume to negotiate. Under 10 trucks: usually too complex.