Airgas Hikes Prices

Its operating units are raising prices for packaged and bulk gases next month.
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Airgas

(ARG)

announced Friday it will increase prices on packaged and bulk gases and other products, effective June 26, or as contracts permit.

The specialty gas distributor will raise prices by 10% to 15% for packaged and bulk industrial gases including oxygen, nitrogen, specialty gases, medical gases, nitrous oxide, carbon dioxide and dry ice, and by 15% to 20% for argon, hydrogen, helium, acetylene and other fuel gases.

In addition, the Radnor, Pa.-based company will raise rental rates for cylinders and bulk tanks, and other service charges, and will continue to pass along higher pricing for hardgoods and safety products. These increases are in addition to ongoing fuel and other surcharges implemented to recover specific costs.

Higher energy prices, especially electricity, have led to substantial increases in product costs as well as operating costs at Airgas fill plants and other facilities, the company said.

"These actions are needed to address the rising costs," the company added. "In the last year, Airgas associates have worked very hard to meet our customers' needs during a period of strong demand and record utilization rates in our industry. Please be assured we will do all we can to meet our customers' strong demand again this year under tight supply conditions."

Shares were up 80 cents, or 2.2%, at $37.65 in recent trading.

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