Fuel Escalation Clause Samples
A Fuel Escalation clause is a contractual provision that allows for adjustments to the contract price based on changes in fuel costs over the duration of the agreement. Typically, this clause specifies a baseline fuel price and outlines a formula or method for recalculating payments if fuel prices rise or fall beyond certain thresholds. For example, in transportation or construction contracts, if the market price of diesel increases significantly, the contractor may be entitled to additional compensation to cover the increased fuel expense. The core function of this clause is to fairly allocate the risk of fuel price volatility between the parties, ensuring that neither side is unduly burdened by unpredictable market fluctuations.
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Fuel Escalation. Tenant agrees to pay a sum equal to Six and Eight- --------------- Tenths (6.8%) Percent per annum of the increased difference of the cost of fuel oil (including sales or other taxes thereon) for as many gallons supplied to the Building, of which the demised premises form a part, as compared to the cost of sixty ($.60) cents per gallon. Payment to Owner shall be due and payable as and when bills are rendered and shall be deemed additional rent and collectible as such. Bills to be rendered for periods are at Owner's discretion. In the event Owner, at its option, elects to change the fuel presently used for the Building to any other type of fuel, then and in that event, the Tenant agrees to pay a share equal to Six and Eight-Tenths (6.8%) Percent per annum of the increased cost of such other fuel supplied to the Building for the term of the within lease based upon the cost of sixty ($.60) cents per gallon. Payment to Owner shall be due and payable as and when bills are rendered accompanied by evidence that the fuel bills have been paid by Owner and shall be deemed additional rent and collectible as such.
Fuel Escalation. Regular unleaded fuel must be purchased within a 30-mile radius of the City of San ▇▇▇▇ Obispo for the fuel escalation charges as outlined in Exhibit A to be triggered. Should fuel escalation prices be triggered, Contractor agrees to provide monthly invoices that include receipts showing fuel costs (price per gallon) and the location where the fuel was purchased during the entire time that the fuel escalation charges are in place.
Fuel Escalation. There will be a fuel price adjustment billed/credited each quarter as a separate line item for Casings shipped during the quarter. The price adjustment will be based on the average price of diesel fuel during the last quarter. The upward or downward unit price adjustment will be based on *****. This index is updated on a weekly basis. The calculation and pricing is in U.S. gallons and will be: *****. A negative number implies a credit and a positive number implies an additional charge.
Fuel Escalation. For Linehaul Owner Operators Only