Fuel Surcharge Letter
Dear Valued Customer,
As we all know, fuel prices continue to increase based on market conditions. In response to changes and volatility in fuel prices, Vistar has applied a fuel surcharge to your invoice for each delivery using a grid based upon the average on-highway diesel prices published by the U.S. Energy Information Administration (“EIA”). As a reminder, the EIA measures the average weekly on-highway price of diesel fuel for different areas of the country.
Effective September 1, 2019, Vistar implemented a fuel surcharge program for each invoice. The fuel surcharge will continue to be based upon diesel prices published by the EIA and the specific terms of the policy will apply as described below. These charges apply to all deliveries made on or after September 1, 2019.
The fuel surcharge amount will be applied to each invoice based upon the below Vistar Fuel Surcharge Grid (“Grid”). 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 last Tuesday of the prior month, i.e. the September per invoice fuel surcharge amounts shown on the Grid will be set based upon the EIA weekly index as of the last Tuesday in August. 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.
| EIA Average On-Highway Diesel Price |
Fuel Surcharge Per Invoice |
| $0.01 - $1.99 | $0.00 |
| $2.00 - $2.24 | $10.00 |
| $2.25 - $2.49 | $10.50 |
| $2.50 - $2.74 | $11.00 |
| $2.75 - $2.99 | $11.50 |
| $2.00 - $3.24 | $12.00 |
| $3.25 - $3.49 | $12.50 |
| $3.50 - $3.74 | $13.00 |
| $3.74 - $3.99 | $13.50 |
| $4.00 - $4.24 | $14.00 |
| $4.25 - $4.49 | $14.50 |
| $4.50 - $4.74 | $15.00 |
| $4.75 - $4.99 | $15.50 |
| $5.00 - $5.24 | $16.00 |
| $5.25 - $5.49 | $16.50 |
| $5.50 - $5.74 | $17.00 |
| $5.75 - $5.99 | $17.50 |
| $6.00 - $6.24 | $18.00 |
| $6.25 - $6.49 | $18.50 |
| $6.50 - $6.74 | $19.00 |
| $6.75 - $6.99 | $19.50 |
| $7.00 - $7.24 | $20.00 |
| $7.25 - $7.49 | $20.50 |
| $7.50 - $7.74 | $21.00 |
| $7.75 - $7.99 | $21.50 |
| $8+ | Grid Extends |
| Grid continues with a $0.50 increase for every $0.25 change to AVG Diesel | |
By way of example using the Grid, if the weekly average on-highway price of diesel fuel published by the EIA was less than $2.00 per gallon in your region on the last Tuesday of the prior month, no fuel surcharge will be applied during the current month. If the average on-highway price of diesel fuel published by the EIA is $2.00 or more per gallon in your region on the last Tuesday of the prior month, Vistar will apply the corresponding fuel surcharge per invoice amount shown in the Grid for each delivery that month. For every $0.25 increase over $2.00 per gallon, the monthly per delivery fuel surcharge increases by $0.50 per invoice. For example, if the EIA published an average weekly on-highway diesel price in your region of between $4.25and $4.49 on the last Tuesday of the prior month, Vistar will apply a fuel surcharge of $14.50 per invoice for each delivery during that month.
For transparency, the fuel surcharge, when applicable, will be shown as a separate line-item charge to your invoice. The fuel surcharge amounts on the Grid are calculated using the EIA on-highway diesel price index and not Vistar’s actual fuel expenses, and the fuel surcharge is not a separate tax or fee required by any governmental agency or entity.
Please contact your Vistar Representative 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 Vistar customer.
Sincerely,
Sean Mahoney
SVP Sales & Marketing
John Ochi
SVP Operations
Anita Chen
VP Finance and CFO