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Central McGowan

FUEL POLICY

Fuel Prices Surging - Up 23% to 25% Since JAN 2022

Central McGowan is implementing a fuel surcharge for the first time in our company’s history. This was not a decision we made easily as surcharges are something we've worked hard to avoid.

This short-term measure s necessary to help us offset record-high fuel prices (see graph at right), rising inflation and additional supply chain surcharges we’re incurring, and get us to a breakeven on delivery expenses.  

This short-term fuel surcharge will apply to invoices for gas/products delivered to customers sites via a Central McGowan bulk, route and/or hot shot delivery trucks. It will not apply to cylinder rental invoices. It will be reviewed weekly and adjusted as appropriate to reflect current fuel pricing.  When diesel fuel drops below $3.50/gallon, the surcharge will drop off.

  • WHAT IS A FUEL SURCHARGE?  A fuel surcharge is a short-term measure for adjusting the amount paid to move freight/deliver goods by taking into account significant variation in fuel prices, compared to historical levels.
  • HOW IS IT CALCULATED & CHARGED?  We've developed a graduated surcharge scale that will adjust along with fuel prices (see table bottom right). Surcharges start once per-gallon prices diesel prices surpass $3.50 (national avg. is currently around $5/gallon). The surcharge will increase $1 for every $0.25   per-gallon increase in diesel fuel price. The surcharge is set up to be charged ONLY once per day.
  • HOW WILL THE FUEL SURCHARGE BE MANAGED? We are monitoring prices weekly and will adjust surcharges as appropriate to follow along with fuel prices. If diesel fuel prices drop below the threshold of $3.50/gallon, surcharges will diminish to $0.00.

OUR COMMITMENT TO YOU: FAIRNESS & TRANSPARENCY.  We will continue to be timely and transparent with our billing and process for these surcharges, making sure they are fair and reflect current market conditions.

We truly thank you for your ongoing partnership, trust and understanding as we navigate through this situation.

Fuel Surcharge Scale

$0.00 to $3.50 No Surcharge
$3.51 to $3.75 $3.00
$3.76 to $4.00 $4.00
$4.01 to $4.25 $5.00
$4.26 to $4.50 $6.00
$4.51 to $4.75 $7.00
$4.76 to $5.00 $8.00
$5.01 to $5.25 $9.00
$5.26 to $5.50 $10.00
$5.51 to $5.75 $11.00
$5.76 to $6.00 $12.00
$6.01 to $6.25 $13.00
$6.26 to $6.50 $14.00
$6.51 to $6.75 $15.00
$6.76 to $7.00 $16.00
2022FuelSurchargeGraph4

Click the button below to visit the Department of Energy website, which tracks and reports on-highway gas and diesel fuel prices.

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