The Fuel Component part of your invoice is the component of your service that is related to the cost of diesel fuel and is a component of the overall cost of your collection service.
The Fuel Component portion of your invoice changes when the cost of diesel fuel reaches certain price points; the Fuel Component can increase or decrease depending on the current cost of diesel fuel.
Through the first half of 2017 diesel fuel prices averaged around $2.50 per gallon, since August 2017, the cost of diesel fuel has been trending upward. Currently the cost of Diesel Fuel has increased to over $3.20 per gallon. This is an almost 30% increase in diesel fuel cost year over year.
We believe the Fuel Component line item on our invoice is the fairest way to manage this significant volatile business expense. Transportation related companies that do not have a Fuel Component on their invoices are not looking long term, and are at risk of not being able to sustain their business as a going concern.
The US Energy Information Administration compiles diesel fuel price information weekly; the information is available on their website at https://www.eia.gov/petroleum/gasdiesel.
Ultimately, we know our company must remain competitive with pricing or potentially lose business. We work very hard to maintain and improve efficiencies to keep the cost of our services as low as possible, working hard to provide the Best Service and the Best Value available in our service areas.