March 12 (Reuters) - Water solutions company Ecolab ( ECL )
said on Thursday it will introduce a 10% to 14% energy
surcharge on its products and services starting April 1 as
soaring oil and gas prices due to the Middle East conflict drive
up manufacturing and logistics costs.
The surcharge highlights the disruption from energy price
volatility as the war in the Middle East disrupts supplies and
constrains transport routes, especially the Strait of Hormuz.
Oil prices soared back above $100 a barrel on Thursday.
"The magnitude and pace of recent energy cost increases now
require this surcharge to mitigate the dramatic rise in oil and
gas costs and its impact on raw material and logistics
inflation," said Ecolab ( ECL ) CEO Christophe Beck.
The surcharge will be monitored closely and might be
adjusted as market conditions evolve, the company added.
Ecolab ( ECL ) last year said it would add a 5% surcharge on all its
products and services in the U.S. to mitigate rising raw
material costs due to changes in international trade policies.