Hydrogen Peroxide Energy Surcharge and Transportation Fuel Surcharge

Energy Surcharge (Natural Gas)

PeroxyChem will apply $0.00/lb energy surcharge on invoices for hydrogen peroxide in order to partially offset the impact of the rapid increase in natural gas prices. The amount of the surcharge will be held constant through December 31, 2018, and will be modified quarterly thereafter based on the three-month forward average NYMEX Henry Hub gas price (as of the 15th of the month prior to the beginning of the each calendar quarter) as shown in the table below. When natural gas prices are at a level below $3.00 per MMBTU, the surcharge will be removed. We will add the adjustment as a separate line item on your invoice.

Hydrogen Peroxide Energy Surcharge Table

Three-month forward average of NYMEX Henry Hub options prices* ($ per MMBTU)Following Calendar Quarter Energy Surcharge
U.S. ($/Lb-100%)Canada (C$/MT-100%)
$8.00/MMTBU and above $0.01/lb for each $1.00/MMBTU increase $26.00/MT for each $1.00/MMBTU increase
$7.00-$7.99 $0.060 $156.00
$6.00-$6.99 $0.0475 $123.50
$5.00-$5.99 $0.0350 $91.00
$4.00-$4.99 $0.0225 $58.50
$3.00-$3.99 $0.0100 $26.00
4th Quarter SurchargeAverage
$.00 cents/lb
$0 CDN/MT
October through December 2018:
$2.81 USD/MMBTU

Transportation Fuel Surcharge (Diesel Fuel)

Truck Deliveries
PeroxyChem 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 Fuel Surcharge Matrix

Cents/GallonSurcharge ($/Shipment)
Every 10 c/gal less Subtract $9
120.1 - 130.0 50
130.1 - 140.0 59
140.1 - 150.0 68
150.1 - 160.0 77
160.1 - 170.0 86
170.1 - 180.0 95
180.1 - 190.0 104
190.1 - 200.0 113
200.1 - 210.0 122
210.1 - 220.0 131
220.1 - 230.0 140
230.1 - 240.0 149
240.1 - 250.0 158
250.1 - 260.0 167
260.1 - 270.0 176
270.1 - 280.0 185
280.1 - 290.0 194
290.1 - 300.0 203
300.1 - 310.0 212
310.1 - 320.0 221
320.1 - 330.0 230
330.1 - 340.0 239
340.1 - 350.0 248
350.1 - 360.0 257
360.1 - 370.0 266
370.1 - 380.0 275
380.1 - 390.0 284
390.1 - 400 293
Every 10 c/gal Inc Add $9

 

Diesel Fuel U.S.$/Shipment
November Average:

$330.00

December 1st Surcharge $230 USD 
$306 CAD


Website: http://www.eia.gov/petroleum/gasdiesel/


Railcar Deliveries
The transportation fuel surcharge for rail deliveries will be based on the average daily West Texas Intermediate (WTI) crude oil price for the month immediately preceding the month for which the surcharge applies.  The WTI price data is available at the Department of Energy website via the link shown below. The surcharge on rail will be adjusted monthly on the 1st of each month.

The fuel surcharges for rail deliveries will be applied via the following schedule:

Rail Fuel Surcharge Matrix

West Texas Intermediate (WTI)Surcharge ($/Shipment)
$43/barrel 340
$48/barrel 425
$53/barrel 510
$58/barrel 595
$63/barrel 680
$68/barrel 765
$73/barrel 850
$78/barrel 935
$83/barrel 1,020
$88/barrel 1,105
$93/barrel 1,190
$98/barrel 1,275
$5/barrel increase Add $85
Rail Fuel U.S.$/Shipment
November Average: $58.48
December 1st Surcharge $595 USD 
$791 CAD


Website: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&S=RWTC&f=D

While PeroxyChem 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.