ARHCA introduces temporary fuel cost recovery surcharge

Municipalities and infrastructure owners across Alberta may begin seeing a new fuel cost recovery surcharge reflected in heavy equipment and construction pricing this season, following a recent notice issued by the Alberta Roadbuilders & Heavy Construction Association (ARHCA). 

The addendum to the 2026 Equipment Rental Rates Guide responds to ongoing volatility in diesel prices and is intended to help contractors manage rising operating costs during the 2026 construction season. While fuel pricing pressures are not new, ARHCA noted that current market instability has created additional uncertainty for infrastructure projects across the province. 

For municipalities, the update is a reminder that project costs may continue to fluctuate throughout the year, particularly for road construction, maintenance, underground servicing, and other equipment-intensive work. 

Under the new approach, a temporary surcharge will be applied based on equipment horsepower and estimated fuel consumption. According to ARHCA, the methodology is designed to provide a standardized and administratively simple way to account for fuel cost increases while maintaining consistency across projects and contractors. 

ARHCA has indicated the surcharge is tied to diesel price assumptions that exceed those originally used in establishing 2026 rental rates. The surcharge may be adjusted further if fuel prices stabilize or shift significantly over the coming months. 

For additional information, please contact ARHCA.