Fuel/Oil Recovery Fee Information
Casella Waste Systems, Inc. provides our customers with the highest quality waste and recycling services at a great overall value. We are constantly working to improve our service, contain our operating costs, and develop cleaner technologies and solutions to reduce our overall environmental impact. However, the rising costs of fuel, oil, and environmental compliance are not fully within our control.
Our Fuel/Oil Recovery Fee is a charge that helps us to recover these costs and achieve an acceptable operating margin. The Fuel/Oil Recovery Fee is not a tax, surcharge, or fee imposed by any regulatory or government agency, but is a fee applied by Casella to cover our company-wide costs associated with diesel fuel, oil, and environmental compliance.
Fuel/Oil Recovery Fee
The Fuel/Oil Recovery Fee component is directly tied to the Regional U.S. Average On-Highway Diesel Fuel Prices reported by the Energy Information Administration of the U.S. Department of Energy (“EIA/DOE”). The EIA/DOE updates this public index weekly by tracking actual average retail diesel prices across our operating regions. For your reference, the index can be viewed by clicking on the following link EIA/DOE Table or the complete diesel data can be downloaded here
The Fuel/Oil Recovery Fee included with your invoice will be updated each month. The Fuel/Oil Recovery Fee for the month is determined by taking the peak weekly diesel price per gallon for the preceding month and applying the corresponding percentage from the Casella Fuel/Oil Recovery Fee Table to the invoice charges before taxes. The Fuel/Oil Recovery Fee included with your invoice seeks to recover Casella’s overall costs of fuel and oil (direct and indirect fuel/oil costs for collection, transfer, recycling, and disposal operations) and achieve an acceptable operating margin.
Frequently Asked Questions
How will you calculate the Fuel/Oil Recovery Fee?
The Fuel/Oil/Environmental Recovery Fee is determined by taking the peak weekly diesel price per gallon for the preceding month from the regional EIA/DOE Index and applying the corresponding percentage from the Casella Fuel/Oil Recovery Fee Table to the invoice charges before taxes.
Is this a fixed fee, or will it be adjusted?
The Fuel/Oil Recovery Fee will be adjusted upwards or downwards if the peak weekly diesel price from the regional EIA/DOE Index changes from the prior period. This means that as diesel prices go down, the Fuel/Oil Recovery Fee portion on your monthly invoice will also go down.
How will I know how much my fee is? Will this be on my statement each month?
The Fuel/Oil Recovery Fee is broken out as a single, separate line on your statement each month.
Are any other companies taking this step?
Given the volatility of oil and fuel prices in recent years, many other companies (UPS, FedEx, and other solid waste and recycling companies) have adopted similar sliding scale fees to manage the costs of servicing their customers.