Gasoline and how we get conned

[Di_in_AZ]

This has been mentioned on other boards. It really annoys me that when the gas prices skyrocketed, wax prices went up as well as shipping rates. Now that gas prices have dropped, has anyone seen any of these companies drop their prices? All we got was that they had to raise their prices because of the gasoline so I guess now they are taking everyone for a ride? This is an excerpt off of the UPS site--notice that their fuel surcharge is now going up again--what for?????? This is such a ripoff it is a shame.

Fuel SurchargeCurrent Fuel Surcharge Rate:

Ground

Through October 1, 2006: 4.75%

Effective October 2, 2006: 5.25%

[sudsnwicks]

This is exactly what I predicted a while back in another thread where we were discussing the wax price increase.

[Candle Man]

I can understand that once prices are raised on supplies they would stay those prices, until another increase but I think the UPS shipping should go down since the fule prices have went down.

[Di_in_AZ]

Well I questioned UPS about the surcharge increase and this is their response:

Thank you for your inquiry. The current fuel surcharge rate for UPS

Ground, UPS Ground Hundredweight, and UPS Standard to Canada shipments is

5.25%. UPS will use an index-based surcharge that is adjusted monthly.

Changes to the surcharge will be effective the first Monday of each month,

and posted approximately two weeks prior to the effective date. The

surcharge for UPS Ground, UPS Ground Hundredweight, and UPS Standard to

Canada shipments is based on the National U.S. Average On-Highway Diesel

Fuel Prices reported by the U.S. Department of Energy.

The fuel surcharge rate for all remaining services currently is 16.5%.

UPS will continue to use an index-based surcharge that is adjusted

monthly. Changes to the surcharge will be effective the first Monday of

each month, and posted approximately two weeks prior to the effective

date. The surcharge for UPS Air Services, UPS 3 Day Select, and UPS

International will be based on the U.S. Gulf Coast (USGC) prices for

kerosene-type jet fuel reported by the U.S. Department of Energy for the

month that is two months prior to the adjustment. For example, the

surcharge for January 2006 will be based on the November 2005 U.S. Gulf

Coast (USGC) Jet Fuel Price.

********************

I, of course, went to the US Department of Energy and pulled up the report to which they refer. It shows a DECLINE in diesel prices. So I have now responded to them with this:

In your email you clearly state that your surcharges are based on the US

Average On Highway Diesel Fuel Prices. I checked that very report and it

shows that there has been a decline in fuel prices; however, your surcharge

has increased. Can you explain this? According to the Department of

Energy, in the same report you have claimed to use, diesel prices have been

in decline since August of this year.

Weekly Retail On-Highway Diesel Prices

Dollars per gallon, including all taxes

U.S. 2.713 2.595 2.546 -0.049 -0.598

East Coast 2.699 2.600 2.567 -0.033 -0.631

New England 2.832 2.730 2.678 -0.052 -0.334

Central Atlantic 2.844 2.746 2.694 -0.052 -0.346

Lower Atlantic 2.625 2.526 2.503 -0.023 -0.780

Midwest 2.624 2.506 2.467 -0.039 -0.616

Gulf Coast 2.636 2.526 2.490 -0.036 -0.695

Rocky Mountain 3.052 2.827 2.679 -0.148 -0.400

West Coast 3.014 2.892 2.789 -0.103 -0.385

California 3.002 2.910 2.835 -0.075 -0.427

*********************

I will post their response when I get it. What a crock, I don't see how they are going to explain the increase when that table is what they are basing it one.

Edit to say the table didn't copy over correctly, the change in prices over the time period is the second to the last column, all negative figures indicating a decline. That was the change over the last week, the last figure is the change over the last year.

[sudsnwicks]

I can understand that once prices are raised on supplies they would stay those prices, until another increase

Yes, I knew this would happen. But let's say I didn't have to replenish any supplies when the gas prices went up and the wax price increased accordingly. Now that gas price has gone down, I need to get more wax and I find I have to raise my prices in order to adjust for this higher cost. It strikes me as odd, like something's wrong with the picture, that I have to increase my prices just when gas prices have gone down. Wouldn't this be difficult to explain to the consumers.