Union Pacific to Raise Prices Citing Fuel Costs

Facing high diesel fuel costs, Union Pacific Railroad said it will charge about 3% more for hauling materials starting next month. The unit of Union Pacific Corp. said its labor costs also are increasing. Contract rates will increase in accordance with specific escalation provisions, the railroad said. Diesel fuel prices have more than doubled over the past year, from 65 cents a gallon to an average of more than $1 a gallon, the railroad said. Union Pacific has 36,000 miles of track across 23 states from the Midwest to the West and Gulf coasts. It operates the country’s largest fleet of diesel locomotives. Union Pacific shares closed unchanged at $38.63 on the New York Stock Exchange.