Why do Limousine and Party Bus companies charge fuel surcharges ?
by AMPM Limousines, on Mar 5, 2023 2:30:24 PM
Since last year 2022 we have implemented 8.5% fuel surcharge in our pricing. Most common questions we get from the customers is what is the fuel surcharge and why are we including the fuel surcharge in the cost.
Limousine and party buses fuel consumption is very high, on an average it's about 25 L for every 100 km, most of the bigger limousines for example Hummer limousine consumes on average 30 L for every 100 km traveled.
This is a fair question and as a consumer one feels that this is another charge on top of the service, just to take more money from the public however the reality is like this. It used to take us $60 to $80 to fuel our vehicles, now the cost is almost doubled to fuel the vehicles.
In order to pass this cost on to the consumers we have two choices we can either raise our pricing or implement the fuel surcharge. Instead of raising our prices we have chose the second option putting in a fixed 8.5% fuel surcharge to accommodate extra costs that we are paying for fuel and we have kept our cost of providing the service the same.
For example instead of raising our prices from $100 to $115 to accommodate the fuel related cost increases we have chose 8.5% which is $8.50 on every $100, we believe this is the best way to combat the raising fuel costs.
Most of the transportation businesses don't have big profit margins so when the fuel starts rising then it cuts into the thin profit margins.
Average Fuel economy on limousines is around 25 Liters for 100 kilometers. just fueled the big pink dodge Ram limousine for $177.46