Almost anyone who’s done business with the large waste companies, such as Waste Management and Republic Services, has noticed fluctuating charges related to fuel and environmental concerns.  Many waste companies, especially smaller vendors, absorb these costs in their basic services, without making direct reference to such cost-concerns in their invoices or statements, though other waste companies create individual line items for purposes of controlling these costs.

Because of supply-and-demand and, therefore, fluctuating costs, company managers, comptrollers, accountants, and others who have hands in budgetary matters, look for ways to make constant the company’s financial variables, with the intent of making the company’s financial big picture a bit clearer and predictable.  Otherwise, important financial decisions—strategic or tactical—are based on imprecise fiscal data, which could have tremendous implications (good or bad) for managers, employees, and shareholders.  Among other ways, fuel and environmental charges attempt to non-arbitrarily equalize the company’s monetary playing field.

The fuel charge encompasses not only diesel fuel—which helps power most of the large vehicles in any waste company’s fleet—but also the lubricants and oils which help maintain vehicles’ moving parts.  These companies obtain relevant information about last month’s peak fuel cost, usually consulting published information of the US Energy Information Administration (DOE/EIA), deriving a percentage based on company benchmark equivalences.  The good news, of course, is that such calculations can usually be obtained by accessing the relevant part of the waste company’s website; then again, the bad news is that standardized percentages often hurt those accounts for which servicing is relatively inexpensive.

The environmental charge helps equalize costs associated with a waste company’s disposal costs, broadly construed.  For the small haulers, waste disposal considers only a few factors, so the headaches associated with recovering costs are quite simple.  However, large waste companies consider operating margins on a nationwide basis (e.g., landfills, transfer stations, collection sites), the variables of which, even if known by the consumer, are considerably numerous and, therefore, hard to calculate.

Understanding how these costs are calculated on your invoice or statement can be tedious and confusing.  Although tax is nearly always excluded from fuel and environmental percentage costs, calculations differ from one waste provider to another, so be sure to understand the charges on your account.  To be sure, nobody wants to pay too much for garbage service!

Dumpster Rental in Fuel & Environmental Costs – How and Why Do They Exist? was last modified: April 17th, 2021 by Dumpster Rental
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