Dow anounced today up to twenty percent price increase in its products.
Hang on to your hats, the problem is starting to move away from the direct cost of fuel.
Quote:
20% price increase at Dow Chemical
Chemical producer will raise product prices this Sunday, citing soaring energy and raw material costs.
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May 28, 2008: 10:44 AM EDT
Dow says raw material costs have soared fourfold since 2002 to $32 billion.
MIDLAND, Mich. (AP) -- Dow Chemical Co. will raise product prices by up to 20% almost immediately to offset the soaring cost of energy and raw materials, and the CEO of the chemical giant lashed out Washington on Wednesday for failing to develop a sound energy policy.
The price increases take effect Sunday and will be based on a product's exposure to exorbitant costs. Dow said it spent $8 billion on energy and hydrocarbon-based feedstock, or raw materials, in 2002 and that could climb fourfold to $32 billion this year.
'True energy crisis'
"For years, Washington has failed to address the issue of rising energy costs and, as a result, the country now faces a true energy crisis, one that is causing serious harm to America's manufacturing sector and all consumers of energy," Chairman and Chief Executive Andrew Liveris said in a statement.
"The government's failure to develop a comprehensive energy policy is causing U.S. industry to lose ground when it comes to global competitiveness, and our own domestic markets are now starting to see demand destruction throughout the U.S."
Liveris said soaring costs for Dow are "forcing difficult discussions with customers."
Dow Chemical (DOW, Fortune 500) makes a broad range of chemical, plastic and agricultural products that are sold in 160 countries.
The company last month reported a 3% drop in quarterly earnings. At the time, Dow said it considered it a strong showing in the face of a 42% jump in feedstock and energy costs
Life is short,Death is long,
Take a vacation.
