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December 12, 2000 8:55 AM, EST

The Department of Defense announced the creation of a joint military-industry fuel price board in a step toward payment of a fuel surcharge by the Pentagon for the transport of goods by commercial motor carriers.

The board will work out the details of how the Military Traffic Management Command will pay the surcharge. Members have already agreed to use the weekly fuel price index published by the Energy Information Administration — a source used commonly in private sector fuel surcharge contracts as well.

MTMC’s commanding officer, Maj. Gen. Kenneth L. Privratsky, said from headquarters in Alexandria, Va., that his intention is “when volatile fuel prices happen, the fuel surcharges take effect.”

Frank Galluzzo, a fuel board staff member, said the group must choose a benchmark price to use, but that it has decided upon 10-cent increments. The more dimes above the benchmark, the higher the surcharge paid.

For the full story, see the Dec. 11 print edition of Transport Topics. .