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What Is A Fuel Recovery Fee?
Why Is AmeriGas Charging A Fuel Recovery Fee?
Did AmeriGas Create The FRF Because Of Hurricane Katrina?
How Long Will AmeriGas Charge The Fuel Recovery Fee?
What Is AmeriGas Doing To Keep Rates Down?
How Long Can We Expect Higher Fuel Costs?
Where Can I Learn More About Fuel Energy Costs?
What Is A Fuel Recovery Fee?
A "fuel recovery fee" or "fuel surcharge" is a fee charged by
companies that transport their product by truck.
The fee helps to offset the significant increases in the cost of gasoline and diesel
being used to operate the trucks. Some examples of companies or businesses charging
this kind of fee are FedEx, UPS, waste disposal, landscaping, florists and fuel oil
companies. AmeriGas pays a fuel surcharge to the common carriers who deliver propane
to our districts.
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Why Is AmeriGas Charging A Fuel Recovery Fee?
Like other delivery companies, higher fuel costs are affecting AmeriGas’ budget
across the board. The purpose of this fee is simply to cover a portion of the
significant increase in fuel costs for trucks used in delivering propane to
customers. Fuel expense for the company nationwide is running at a rate of
34% over last year ($4.9MM). The fee is being created to offset this increase
in our expenses.
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Did AmeriGas Create The FRF Because Of Hurricane Katrina?
The fee is designed to manage the normal supply and demand market forces we’ve
experienced over the past few years, not temporary spikes caused by disasters.
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How Long Will AmeriGas Charge The Fuel Recovery Fee?
This will depend on the energy market. We can assure our customers that if the fuel
costs drop, we will evaluate the need to decrease or discontinue charging the fee. Or
likewise if energy costs rise, we may need to increase the fee.
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What Is AmeriGas Doing To Keep Rates Down?
- AmeriGas constantly reviews equipment usage and fuel consumption.
- Efficient routing helps us to decrease fuel consumption companywide.
- AmeriGas negotiates special agreements with vendors whenever possible to secure lower prices.
- Meanwhile, fuel prices/quotes are monitored daily to achieve the very best fuel prices and to maintain a fuel inventory that allows for uninterrupted customer service.
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How Long Can We Expect Higher Fuel Costs?
It’s hard to predict. Depending on world events and other economic factors, the pricing
issue may get worse before it gets better.
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Where Can I Learn More About Fuel Energy Costs?
Visit www.energy.gov, the U.S. Department of Energy website or visit
www.fueleconomy.gov.
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