Amazon adds 3.5% fuel surcharge on sellers as Iran war drives up shipping costs

Amazon has announced a 3.5% fuel and logistics surcharge on third-party sellers who use Fulfillment by Amazon, effective 17 April. The surcharge averages 17 cents per unit but varies by item size. Amazon cited rising fuel costs driven by the Iran war, which has constrained crude oil supply through the Strait of Hormuz since late February. UPS and FedEx have also raised their fuel surcharges, and the US Postal Service announced an 8% fuel surcharge on packages from 26 April. The costs are expected to be passed on to consumers in the form of higher product prices. Amazon said the surcharge will remain for the foreseeable future but will be reviewed as market conditions change.

11 April 2026 · 3 sources · AI-generated, human-reviewed

Amazon will impose a 3.5% fuel and logistics surcharge on third-party sellers who use its Fulfillment by Amazon service, effective 17 April. The company cited soaring fuel costs caused by the Iran war.

Why it matters: more than 60% of products sold on Amazon come from third-party sellers, and the surcharge is likely to be passed on to consumers as higher prices on millions of items.

The surcharge

The 3.5% charge applies to sellers in the US and Canada who use Amazon’s distribution network to store, pack, and ship their products. On average, it adds 17 cents per unit, though the actual cost varies by item size and dimensions.

Amazon told TechCrunch the surcharge will be in place “for the foreseeable future” but will be reviewed as market conditions change. The company did not commit to a specific end date.

Industry-wide trend

Amazon is not alone. UPS and FedEx have both increased their fuel surcharges since the Iran conflict began on 28 February. The US Postal Service announced an 8% fuel surcharge on packages effective 26 April.

The war has driven the national average petrol price to $4.15 per gallon, up nearly 40% since the conflict started. Diesel, which powers the trucks and aircraft that move parcels, has seen similar increases.

Impact on consumers

Most third-party sellers are small and medium-sized businesses with thin margins. Industry analysts expect the surcharge to flow through to retail prices within weeks, adding to the inflationary pressure already visible in the March CPI data, which showed consumer prices rising 3.3% annually.