Diesel Fuel Surcharge To Take Effect Next Week; Guardian Announces Price Increase

PPG Industries and Pilkington North America will begin implementing a $100 diesel fuel charge next week. Guardian has also sent out a letter indicating that it is raising prices for its annealed, tempered and laminated glass by 3 percent effective May 16. At this time, AFG Industries and Cardinal Glass have not announced any surcharges or price increases.

Pittsburgh-based PPG kicked off the latest round of surcharges when it issued a letter to customers on April 7 announcing its plans.

The letter stated: "Rising diesel fuel prices have dramatically increased the cost of transporting products for every industry, including flat glass producers like PPG. This is nothing new. In fact, PPG has been paying transportation fuel surcharges to its freight carriers for almost ten years. The diesel fuel surcharge we pay to the trucking industry is indexed to the U.S. Department of Energy's Diesel Fuel Index and has increased 55 percent in the past two and a half years."

Toledo-based Pilkington will begin implementing its surcharge on May 16. The company also cites the rising prices it is paying. "This action is being taken to partially, and we stress partially, recover some of the additional fuel costs which are being passed on to us by our freight and hauling carriers," a company spokesperson told USGNN.

Guardian indicated that it was taking its actions for the same reasons the other manufacturers have cited, but was making a price hike rather than a surcharge.

According to a senior official at one of the primary glass manufacturers, all the glass manufacturers are doing is passing along the costs which the trucking companies are imposing on them, which their customers (distributors and fabricators) are then passing along to their customers. "In the glass industry, the primary glass manufacturer pays for delivery," he points out. "Since this has been going on for several years, and all the parties understand about the rising fuel costs, the system has been accepted," he explains. "But anyone would have to be careful to deviate from what has become accepted, because then the question of price gouging would come into the picture."


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