PFS FUEL SURCHARGE NOTICE

As we all know, fuel prices fluctuate from time to time based on market conditions.  Although Performance Foodservice (“PFS”) factors certain transportation costs into the price of its products, PFS has implemented a fuel surcharge program to address the volatility in fuel prices. This Notice explains PFS’s assessment of fuel surcharges pursuant to its standard fuel surcharge program.  

Since May 1, 2018, PFS has assessed fuel surcharges using a grid based upon the average weekly on-highway diesel prices published by the U.S. Energy Information Administration (“EIA”).  Specifically, the fuel surcharge amount is applied to each invoice based upon the PFS Fuel Surcharge Grid (“Grid”) applicable to your geographic region. The Grid will be updated on a monthly basis by determining the weekly average on-highway diesel price for your region published by the EIA on the third Tuesday of the prior month for all months except January, April, July and October where the fourth Tuesday of that month is used, i.e. the December per invoice fuel surcharge amounts shown on the Grid will be set based upon the EIA weekly index as of the third Tuesday in November. 

PFS FUEL SURCHARGE GRID SAMPLE FOR ILLUSTRATIVE PURPOSES 

Under PFS’s fuel surcharge program, if the average on-highway price of diesel fuel published by the EIA is $1.50 or more per gallon in your region on the third Tuesday of the prior month (or fourth Tuesday of January, April, July and October), PFS will apply the corresponding fuel surcharge per invoice amount shown in the Grid for each delivery during that month.  By way of example using a historical example of the Grid:




1) If the weekly average on-highway price of diesel fuel published by the EIA was less than $1.50 per gallon in your region on the third Tuesday of the prior month (or fourth Tuesday of January, April, July and October), no fuel surcharge will be applied during the current month; 

2) Every $.50 increase over $1.50 per gallon, the monthly per delivery fuel surcharge increases by $.50 per invoice; and

3) To monitor diesel fuel prices in your region, simply visit the EIA website at: https://www.eia.gov/dnav/pet/pet_pri_gnd_a_epd2d_pte_dpgal_w.htm.

For further transparency, the fuel surcharge, when applicable, will be shown as a separate line item charge to your invoice.  If a fuel surcharge is assessed, it will only be billed once per delivery regardless of the dollar value or amount of goods purchased. The fuel surcharge amounts on the Grid are calculated using the EIA on-highway diesel price index and not PFS’s actual fuel expenses or the cost of fuel associated with a delivery to a particular customer’s location.  The assessed fuel surcharge is not a separate tax or fee required by any governmental agency or entity.  

Accordingly, the fuel surcharge assessed for a particular delivery may exceed PFS’ actual fuel expenses associated with that delivery.  PFS’ fuel surcharge program, fuel surcharge amounts billed, and the Grid amounts are subject to change at PFS’ discretion.

Please contact your Area Manager if you have any questions regarding our fuel surcharge program or which EIA region is applicable to you.  Thank you for your continued business as a valued PFS customer.