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 monthly using the U.S. On-Highway Diesel Fuel Price for your region as published by the EIA. The applicable fuel price will be determined based on the third Tuesday of a four-Tuesday month or the fourth Tuesday of a five-Tuesday month. For example, because December has five Tuesdays, the diesel fuel price published on the fourth Tuesday in December will be used to determine January fuel surcharge amounts.

PFS FUEL SURCHARGE GRID SAMPLE FOR ILLUSTRATIVE PURPOSES 

Under PFG's fuel surcharge program, if the average U.S. On-Highway Diesel Fuel Price published by the EIA for your region is $1.50 or more per gallon on the applicable Tuesday, PFG will apply the corresponding fuel surcharge shown in the Grid to each delivery invoice during the following month. The grid we will utilize is as follows:

Grid continues with a $1.00 increase for every $0.50 increase in average diesel cost.

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.