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DOD Introduces New Proposal for Changing Fuel Surcharge

fuel surchargeAccording to military officials, who are overlooking the Defense Personal Property Program (DP3), there would be revision in the proposal for overhauling the technique used for the calculation of disease fuel surcharge paid in DP3 movements. The proposal is under SDDC’s consideration for approval. However, it states that there would be an increase of 1% in surcharge for increase of each 12 to 14 cents per gallon in diesel over $2.50. the current set limit is 10 centers per gallon.

 

The new changes were announced by Lt. Col. Michael Erhardt of USAF at the annual conference of the International Association of Movers in the capital. Earlier, the SDDC had planned to increase the surcharge base to $3.51 and change the distance and weight formula. However, the combination of the two points was unacceptable to the industry.

According to the CEO and President of AMSA Linda Bauer Darr, the new proposal comes with many benefits to the van line agents, drivers and all those movers who are associated with moving properties of military personnel. She further added that staff at the Government Affairs department of AMSA were able to make this possible after their hard work.

 

Darr and AMSA’s Vice-President – Military Affairs, Scott Michael met Gen. Thomas J. Richardson in August to discuss the negatives of the initial plan that was designed for movers involved in moving military personnel property. According to Erhardt, if the new proposal comes into force, it would lay 13% surcharge, while the existing surcharge is 16%.

 

However, Erhardt has not revealed the precise cents per gallon point, but has said that it would be within the 12 to 14 cents bracket. This means there would be lesser number of adjustments. He added that the new plan would help reduce the fuel surcharge paid by the defense forces and would be nowhere as drastic as the initial proposal from the SDDC.

 

According to military officials, who are overlooking the Defense Personal Property Program (DP3), there would be revision in the proposal for overhauling the technique used for the calculation of disease fuel surcharge paid in DP3 movements. The proposal is under SDDC’s consideration for approval. However, it states that there would be an increase of 1% in surcharge for increase of each 12 to 14 cents per gallon in diesel over $2.50. the current set limit is 10 centers per gallon.

The new changes were announced by Lt. Col. Michael Erhardt of USAF at the annual conference of the International Association of Movers in the capital. Earlier, the SDDC had planned to increase the surcharge base to $3.51 and change the distance and weight formula. However, the combination of the two points was unacceptable to the industry.

According to the CEO and President of AMSA Linda Bauer Darr, the new proposal comes with many benefits to the van line agents, drivers and all those movers who are associated with moving properties of military personnel. She further added that staff at the Government Affairs department of AMSA were able to make this possible after their hard work.

Darr and AMSA’s Vice-President – Military Affairs, Scott Michael met Gen. Thomas J. Richardson in August to discuss the negatives of the initial plan that was designed for movers involved in moving military personnel property. According to Erhardt, if the new proposal comes into force, it would lay 13% surcharge, while the existing surcharge is 16%.

However, Erhardt has not revealed the precise cents per gallon point, but has said that it would be within the 12 to 14 cents bracket. This means there would be lesser number of adjustments. He added that the new plan would help reduce the fuel surcharge paid by the defense forces and would be nowhere as drastic as the initial proposal from the SDDC.