Dear Valued Customer,
We are writing to inform you of a temporary change related to fuel and transportation costs.
Over the past several weeks, we’ve been closely watching the impact of the conflict in the middle east on fuel markets, and we know you have been too. Diesel prices have surged almost 50% since late February, and the disruption to global oil supply continues to affect our logistics operations.
For as long as we possibly could, we chose to absorb these costs rather than pass them on. That decision reflects how much we value our partnership with you. But the scale and duration of this fuel crisis has made it necessary for us to make a change.
Beginning April 13th, when the U.S. national average diesel price reaches or exceeds $4.21 per gallon, you will see an Adverse Fuel Market Adjustment reflected on your Lipari Foods invoices. This temporary market adjustment is calculated as a percentage of your order total, scaled to the national average diesel price, and will appear as its own line item so it’s always visible and easy to track. The rate may adjust each week on Monday, based on the national average published every Tuesday by the U.S. Department of Energy.
Adjustment based on diesel fuel costs:
| EIA Cost Per Gallon | Adverse Fuel Market Adjustment – % of Sales |
| $0.00 – $4.20 | 0.00% |
| $4.21 – $4.50 | 0.40% |
| $4.51 – $4.80 | 0.60% |
| $4.81 – $5.10 | 0.80% |
| $5.11 – $5.40 | 1.00% |
| $5.41 – $5.70 | 1.20% |
| $5.71 – $6.00 | 1.40% |
| $6.01 – $6.30 | 1.60% |
| $6.31 – $6.60 | 1.80% |
| $6.61 – $6.90 | 2.00% |
| $6.91 – $7.20 | 2.20% |
| $7.21 – $7.50 | 2.40% |
| $7.51 – $7.80* | 2.60% |
* Lipari notes to the extent the diesel cost per gallon exceeds $7.80 the fuel market adjustment will increase proportionally.
Please note the following important details:
- The market adjustment is temporary and directly tied to fuel market conditions.
- We have implemented a flexible approach that allows the adjustment to be reduced or removed promptly when fuel prices decline.
- We continue to absorb a portion of the increased fuel costs and are actively improving operational efficiency to limit the impact.
This isn’t a decision we made lightly or quickly, it’s one we delayed as long as we responsibly could, and we’re grateful for your trust and your business.
Your Lipari Foods sales rep is always available to talk through any questions or concerns.
