WASHINGTON (AFX) - The Surface Transportation Board issued a proposed rule this week that would seek to curb excessive fuel surcharges charged by railroads.
The new rules, which are up for public comment until Sept. 25, would prohibit 'double dipping' by the railroads. That means fuel costs could not be calculated into certain price hikes if there are other fuel surcharges assessed.
The agency said the rules follow the board's May 11 hearing at which railroads and shippers testified about railroad competitiveness. Montana Gov. Brian Schweitzer was one of the witnesses and criticized the agency for not doing enough to encourage more railroad competition in Montana.
Schweitzer, a Democrat, told the Surface Transportation Board that 'things cannot get much worse' for Montana as the board has allowed one company, BNSF Railway Co., to monopolize rail shipping in the state.
Schweitzer said that state analysts have shown the company is currently charging fuel surcharges that are greater than the actual fuel costs on rail movements from Montana.
'One shipper should not be charged more than the actual fuel allocated to the movement of their goods,' he said.
The agency would also require the nation's largest railroads to be more accountable by submitting a monthly report showing actual total fuel costs, total fuel consumption and total fuel surcharge revenues.
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