Fuel Price adjustments will be made for deliveries of road salt during the contract period with monthly updates posted to this page.
- The
base rate for calculating adjustments will be established as posted in the EIA
Retail On-Highway Diesel Prices for “Midwest PADD2". The
contract will identify the weekly rate to be used. This is
generally the week the contract bids are opened.
- The previous month's prices
shall be used to determine the monthly average (i.e. – August's prices will be
used to determine September's adjustment). All prices will be rounded to two
decimal place.
- The fuel price adjustment shall be applied for the date of delivery. (Ex.: If a purchase order for salt is received on 1/30, with delivery on 2/2, the fuel price adjustment used will be the month of February)
- The contract cost per ton of salt shall not be changed on any invoice. A separate line item shall be added to any invoice to account for an increase or decrease in the fuel price adjustment.
EXAMPLE FUEL PRICE ADJUSTMENT INCREASE:
Published rate on date of bid opening $4.07
Monthly Average Price $4.17
Monthly Average Price – Published rate on date of bid opening = Fuel Price Adjustment
$4.17 - $4.07 = $0.10 = Additional amount allowed to be added to price per ton.
EXAMPLE FUEL PRICE ADJUSTMENT DECREASE:
Published rate on date of bid opening $4.07
Monthly Average Price $3.97
Monthly Average Price – Published rate on date of bid opening = Fuel Price Adjustment
$3.97 - $4.07 = -$0.10 = Amount allowed to be deducted from price per ton.