Dow Raises Prices on Fuel Cost Spike

The chemical company rebukes Washington for failing to address the problem.
By TSC Staff ,

Dow Chemical

(DOW) - Get Report

on Wednesday said it was raising the prices of all products as much as 20% in response to soaring energy costs, issuing a strong rebuke of Washington's failure to address the issue.

At the current rate, energy and feedstock costs could climb to $32 billion this year. Dow spent $8 billion on the same costs in 2002.

"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," said Chairman and CEO Andrew Liveris. "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."

Dow said it plans to review all terms with all customers as it increases prices for its broad range of products and services such as food and pharmaceuticals, paints, packaging and personal care products.

The company also said it is "continuing its aggressive cost-control plan."

Shares were up fractionally to $40.55 in recent trading.

Competitors

DuPont

(DD) - Get Report

,

Air Products & Chemicals

(APD) - Get Report

,

Rohm & Haas

(ROH)

and

Celanese

(CE) - Get Report

also were rising modestly.

This article was written by a staff member of TheStreet.com.

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