New Jersey Businesses Added Surcharges Amid Fuel Hikes

Rising diesel and gasoline costs have forced local service firms to pass expenses to clients via surcharges.

Updated on Sept. 22, 2026 in Inflation

Isometric editorial illustration of an industrial fuel hose resting against a large steel storage tank, representing rising energy operational costs. — New Jersey service businesses have implemented fuel surcharges of up to 12% to offset record diesel and gasoline costs impacting operating margins. AI Illustration. Upload story photo >

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Do you believe businesses should pass rising fuel costs directly to their customers?

New Jersey businesses have begun implementing fuel surcharges ranging from 5% to 12% as diesel prices climbed to record highs. The surge follows global supply chain disruptions caused by geopolitical conflicts affecting oil infrastructure.

Why it matters

Higher fuel procurement costs directly compress operating margins for local service-based businesses, necessitating price adjustments to maintain profitability. These increased costs stem from significant international disruptions including the closure of the Strait of Hormuz and attacks on Saudi oil assets.

Diesel reached a record $6.46 per gallon on Sept. 11, while average New Jersey gas prices hit $4.42 compared to $3.12 one year prior. Landscaping firms are currently applying surcharges between 5% and 12% to offset costs, with some individual clients seeing monthly increases of up to $75.

The players

Chris James Landscaping

A local service operator in New Jersey facing increased overhead due to rising fuel consumption.

Waste Management

A large-scale waste collection and environmental services provider that utilizes fuel surcharges to manage diesel volatility.

The details

Businesses are mitigating the volatility of fuel prices by embedding surcharges directly into invoices to recover unpredictable operational expenses. Firms like Chris James Landscaping have already spent over $60,000 on fuel through September 2026, forcing a shift in how they structure service contracts. Meanwhile, larger entities like Waste Management utilize these surcharges to stabilize their balance sheets as transportation costs continue to rise.

Diesel hit a record high of $6.46 per gallon on September 11, 2026.
The average gas price in New Jersey was $4.42 on September 21, 2026.
Businesses expect to pass further costs to customers throughout 2027.

Market Landscape

The current localized cost hikes follow the broader instability caused by the closure of the Strait of Hormuz, which disrupted global energy logistics. This trend marks a shift toward more aggressive pass-through pricing models as businesses react to sustained volatility in oil-sensitive markets.

Operators should review their service agreements to determine if current fuel surcharge clauses provide sufficient protection against further energy price spikes. Businesses without existing surcharge structures may need to re-evaluate their pricing strategy to ensure margins do not erode further.

The takeaway

The sudden rise in fuel prices underscores the necessity of having flexible contract terms that account for external supply chain shocks. Monitor daily energy spot prices as a signal for when to activate or adjust existing surcharges in your own contracts.