Increase in Fuel Prices Effect Businesses and Consumers Everywhere.
Over the last few months, fuel prices have skyrocketed. This in turn, has caused a massive change in price for many of the goods you use every single day. The transportation industry effects every industry in our country. When the price of oil and gas goes up, you are seeing the price of everyday items rise as well. Not only are material goods like our stone products seeing an increase in price, but even your groceries are impacted by this inflation. We are seeing weekly increases in the price of diesel. This past week it has reached over $6.37 per gallon in New England. To see your area’s national average, click here.
We saw a lot of these rises once President Biden signed the executive order reversing President Trump’s decision to decrease regulations on the drilling of oil in our country. Many of us know of the cancelation of the Keystone Pipeline. Though this decision was made in 2020, economic impacts often take months if not years to influence our economy. We saw another direct impact from the war against Ukraine. Russia was a major producer of Oil and many countries across the globe pulled back from utilizing Russia’s sources while the war was going on. In our country, President Biden put a ban on imports from Russian oil therefore causing an increase in price from other fuel and oil suppliers.
How Businesses Are Adjusting: What is a Fuel Surcharge?
To adjust to the quickly rising prices of fuel many industries are implementing “fuel surcharges”. If you are working in a more blue-collar field this is not a new concept. However, for many Americans this is something new you are seeing. A fuel surcharge is a fee added to an invoice to help compensate for high fuel prices. You will see this in fields where you are running heavy equipment or transferring a product or service. Many companies and small businesses have different ways of adjusting to this increase. Some may increase their overall prices, whereas others, like ourselves, add a separate line item following weekly trends.
For our customers we try and update our prices weekly so you always know what the charge may be. Our full fuel surcharge policy is listed below.
Due to the increase in fuel prices that has taken place in the last 12 months, our fuel surcharge policy will now go in effect when the east coast on-highway diesel average reaches $4.00 / gallon.
There will be a 1% increase on the total invoiced amount, every additional $0.10 increase added onto the east coast average, will result in an additional 1% per ton.
Please note that if the average goes below $4.00 the fuel surcharge will be eliminated.
Thank you for your continued support and understanding
If you have any questions regarding fuel surcharges, please contact us and we are happy to help.