December 30, 2010

Higher Fuel Costs Responsible for Trash Collection Surcharge

Rising diesel fuel costs mean Memphis residents will see a slight increase in trash collection fees beginning January 1st.

Veolia Environmental Services announced implementation of a fuel surcharge for the first quarter of 2011 after the average cost of diesel fuel exceeded $3.00 in the fourth quarter of the 2010.

The company highlighted a spike in fuel costs at the end of 2010. Fuel costs were $2.90 per gallon early in September before topping the $3.00 cap midway through October. Average diesel fuel costs in November were more than $3.12. Overall, the average cost of fuel was $3.04, resulting in a $0.04 surcharge.

Under the company's existing agreement with the city, Veolia has the contractual right to levy a fuel surcharge if the diesel fuel prices exceed $3.00.

Residential service will now cost $10.41 a month in January, February and March of 2011. Senior citizen rates will increase to $8.81 a month for the first quarter.

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