
Over the last 10 or 12 years, the costs associated with storing, transporting, filling, and selling, hazardous materials have increased draamatically. These costs are generally due to government and insurance company regulations.
Some things that add cost to a cylinder of gas are:
Increased insurance premiums for handling hazardous materials.
Commercial driver training.
Increased cylinder retest costs.
Cylinder disposal fees.
Mandatory drug testing for drivers.
Increased FDA regulations on medical gases.
Increased regulations on storage of gases.
Increased driver record keeping.
Hazmat information required to be given to ALL gas customers.
24 Hour Emergency Response Required
Added Mandatory employee training requirements
Increased Labeling requirements
and the list goes on, I just sold the stuff for twenty years, I didn't pay the bills.
Anyway, the big boys, AirGas, Praxair, BOC and so forth, started this Hazmat thinng as a way to recoup some of these costs. It started as a nominal fee, a couple bucks, and was usually only seen at major company locations. Well, then it started escalating, and the independants, reasonably so, started to charge it also. Now, it is a cash cow for the industry. Just an example, in 1997 when the independant that I worked for was bought out, we had ZERO delivery charges, and a $3.25 hazmat charge on delivered gases, and a $1.00 Hazmat on cylinders picked up at our stores. Those are per invoice, not cylinder. As of October 1st, we were charging, $12.00 hazmat and $5.50 delivery, per invoice again. That is an increase of over 500% in 7 years.
Have those costs increased that much over that time? Surprisingly, in some cases, it is not far from that. Have your wages increased that much in that period of time? Most likely not.
So the charge is not to move the cylinder 50 or 100 feet, it for all the costs associated with delivering bulk gases, and cylinders, all along the supply chain line. I am not defending the charges, just trying to let you see it from the other side. Hope it makes it a little clearer now....

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