UPDATE 1-Ecolab to impose global energy surcharge as oil, gas costs soar

Ecolab Inc. -1.86%

Ecolab Inc.

ECL

262.91

-1.86%

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March 12 (Reuters) - Water solutions company Ecolab ECL.N 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. O/R

"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 CEO Christophe Beck.

The surcharge will be monitored closely and might be adjusted as market conditions evolve, the company added.

Ecolab 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.



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