Transportation Fuel Surcharge (Diesel Fuel)
Truck Deliveries
FMC will implement fuel surcharges for truck deliveries based on the Department of Energy's, Energy Information Administration (EIA) prior month’s weekly average U.S. diesel fuel price. The DOE diesel price data is available via the website shown below. The fuel surcharge will be adjusted monthly on the 1st of each month.
The fuel surcharges for truck deliveries will be applied via the following schedule:
|
Truck Transportation Fuel Surcharge |
|
|
|
Diesel Fuel Cost |
% Surcharge |
|
|
|
|
Dollars/Gallon |
|
Diesel Fuel All Regions |
$/gal |
|
|
|
|
|
|
|
2.801 - 2.900 |
18.0 |
|
04/07//2008 |
3.955 |
|
2.901 - 3.000 |
19.0 |
|
04/14/2008 |
4.059 |
|
3.001 - 3.100 |
20.0 |
|
04/21/2008 |
4.143 |
|
3.101 - 3.200 |
21.0 |
|
04/28/2008 |
4.177 |
|
3.201 - 3.300 |
22.0 |
|
|
|
|
3.301 - 3.400 |
23.0 |
|
April Average |
4.083 |
|
Every 10 c/gal Inc |
Add 1.0 % |
|
May 1st Surcharge |
30.0% |
|
|
|
|
|
|
Website: http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp
Railcar Deliveries
The rail transportation fuel surcharge is applied quarterly and is triggered when the crude oil price remains above the threshold crude price for a period of thirty (30) consecutive calendar days. Additionally, the rail transportation fuel surcharge will be reversed if the WTI crude oil price falls below the threshold price for a period of thirty (30) consecutive calendar days.
The fuel surcharges for rail deliveries will be applied via the following schedule:
|
Rail Fuel Surcharge Matrix |
|
|
|
|
West Texas Intermediate (WTI) |
Surcharge (%) |
|
WTI |
% per Shipment |
|
|
|
|
|
|
|
|
|
|
|
>$83/barrel |
16 |
|
|
|
|
>$88/barrel |
18 |
|
Average: >$98barrel |
02/19/08 through 3/21/08 |
|
>$93/barrel |
20 |
|
|
|
|
>$98/barrel |
22 |
|
May 1st Surcharge |
22% |
|
$5/barrel increase |
Add 2% |
|
|
Website: http://www.eia.doe.gov/emeu/international/crude1.html
While FMC has absorbed natural gas and fuel cost increases to date, the magnitude of these cost increases has reached the point where we must take action to offset a portion of the impact.