UNFI FUEL INDEX SURCHARGE POLICY
Although UNFI factors certain transportation costs into the price of its products, UNFI also charges an additional amount (a “Fuel Index Surcharge”) in accordance with this policy to account for fluctuations in fuel prices with respect to deliveries from UNFI’s Natural distribution centers. This policy replaces and supersedes UNFI’s Fuel Surcharge Policy dated as of October 2009.
Specifically, UNFI will bill a Fuel Surcharge if the weekly average of retail on-highway diesel price per gallon exceeds $2.49 as reported by the U.S. Department of Energy, Energy Information Administration (the “EIA Index”), using either the national average or the U.S. regional level according to the location of the UNFI Natural distribution center servicing the customer. Information regarding the retail on-highway diesel prices published by the EIA may be found at: https://www.eia.gov/dnav/pet/pet_pri_gnd_a_epd2d_pte_dpgal_w.htm
As the below table shows, the amount of the Fuel Index Surcharge will decrease or increase based upon changes to the applicable EIA Index of retail on-highway diesel prices and is determined solely by the applicable EIA Index diesel rate.
| EIA Index Cost Per Gallon | Up to $2.49 | $2.50-$2.74 | $2.75-$2.99 | $3.00-$3.24 | $3.25-$3.49 | $3.50-$3.74 | $3.75-$3.99 | $4.00-$4.25 | $4.25-$4.49 | $4.50-$4.74 |
| Fuel Surcharge Billed Per Delivery | $0.00 | $10.00 | $15.00 | $20.00 | $25.00 | $30.00 | $35.00 | $40.00 | $45.00 | $50.00 |
| EIA Index Cost Per Gallon | $4.75-$4.99 | $5.00-$5.24 | $5.25-$5.49 | $5.50-$5.74 | $5.75-$5.99 | $6.00-$6.24 | $6.25-$6.49 | $6.50-$6.74 | $6.75-$6.99 | $7.00-$7.24 |
| Fuel Surcharge Billed Per Delivery | $55.00 | $60.00 | $65.00 | $70.00 | $75.00 | $80.00 | $85.00 | $90.00 | $95.00 | $100.00 |
Any Fuel Index Surcharge amount assessed under this policy will be shown as a separate line item at the bottom of your invoice, and will only be billed once for each delivery regardless of the number of orders delivered or dollar amount. To provide you an example: if the applicable EIA Index reports that the average weekly diesel prices for a one-week period are within $2.50 to $2.74 a gallon at the time a delivery is scheduled, that delivery will be assessed a $10.00 Fuel Index Surcharge, even if it occurs in a subsequent week.
As such, the calculation of the Fuel Index Surcharge amount is not based upon UNFI’s actual fuel expenses or UNFI’s cost of fuel associated with a specific delivery to any particular customer at the time of delivery. In addition, the calculation of the Fuel Index Surcharge amount is not based upon a customer’s location. Accordingly, the assessed Fuel Index Surcharge may exceed or be less than UNFI’s actual fuel costs associated with a delivery.
The Fuel Index Surcharges are not being assessed by UNFI to recover or pay for a separate tax or fee required by any governmental agency or entity. This policy, the Fuel Index Surcharge amounts, and the table used to calculate the Fuel Index Surcharge amounts are subject to change at our discretion. Please note that customers located in the State of Hawaii, customers participating in the “small drop” fuel index surcharge program and customers that receive deliveries from UNFI distributions centers that are not Natural distribution centers are not subject to this policy.
If you have any questions or concerns regarding the Fuel Index Surcharge policy, please contact your UNFI representative. We look forward to building a strong business partnership with your company, and appreciate your understanding of the UNFI’s Fuel Index Surcharge policy.
By placing an order with UNFI, you agree to the Fuel Index Surcharge policy and commit to paying the Fuel Index Surcharge as billed by UNFI.
April 2022