Dow Chemical Pushes Up Prices | Chemical & Engineering News
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Web Date: May 28, 2008

Dow Chemical Pushes Up Prices

Company blames Uncle Sam for high raw-material costs
Department: Business

Dow Chemical is raising prices for all of its products in response to rising energy costs. The company says prices for some products could increase by as much as 20%, depending on how hard the goods have been hit by rising feedstock, energy, and transportation costs.

Dow CEO Andrew N. Liveris says his company's "feedstock and energy bill" increased by 42% in the first quarter of this year compared with the same quarter last year. At current rates, Liveris adds, Dow's combined energy and feedstock costs could hit $32 billion this year, compared with only $8 billion in 2002.

The U.S. government's failure to develop a comprehensive energy policy has undermined U.S. competitiveness and is weakening domestic demand, Liveris says. "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."

 
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