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UPS Inc. said Monday that changes to its diesel and jet fuel surcharges will now be subject to a one-week lag from the federal government’s prices instead of a two-week lag, a move that matches the surcharge policy of archrival FedEx Corp.

Under UPS’ (NYSE: UPS) new directive, its fuel surcharges for the week starting March 21 will be based on the price that was set this past Monday by the Energy Information Administration. Based on the EIA price and UPS’ revised surcharge formula, the company’s diesel fuel levy will reach about 15.25% as of this Monday. That will match the surcharge now in place on FedEx’s (NYSE: FDX) ground-delivery services.

UPS’ move comes as the national average for a gallon of on-highway diesel fuel spiked on Monday to a record $5.25, a 41 cent week-over-week jump. Over the past two weeks, diesel prices have climbed an astounding $1.15 a gallon. UPS and FedEx (NYSE: FDX) are playing catch-up with soaring fuel prices. UPS, which increasingly relies on fuel surcharges to hit its revenue targets, does not want to miss an opportunity to capture surcharges based on the higher prices.

A UPS spokesman said the change “allows us to more quickly align the costs we incur for fuel to serve our customers.”

Officers from the Pensacola Police Department responded to a call about a disturbance between a store clerk and a UPS delivery driver.

According to the driver, he was making a delivery at the Oasis Beauty Supply when the store clerk, Jad Aroury, started arguing with him. When the driver tried to leave the store, Aroury allegedly followed him out and continued trying to argue, according to Pensacola Police. Eventually, Aroury went back inside the store before returning with a handgun tucked into his waistband.

Aroury went inside the store a second time and when he came back out this time he had the gun in his hand, pointing it at the driver. The driver jumped into his truck and sped away before calling the police.

The United Parcel Service is scrambling to book reservations with the Steamship Authority for its trucks to make deliveries on Nantucket this summer after an apparent administrative error.

UPS neglected to request reservations during the early priority booking window that the Steamship Authority provides to freight shippers, the Boston Globe reported. Ferries to Nantucket from May to October were booked near capacity for large shipping trucks once officials realized the mistake.

Some Nantucket merchants are beginning to panic, according to the Globe, since a large portion of orders are usually delivered to the island on a UPS truck.

At the beginning of February, United Parcel Service Inc. (NYSE:UPS) announced that it was raising its quarterly dividend by 49%. This is one of the largest increases this year amongst the big-cap names in the market.

Its not like UPS is just beginning its dividend growth streak or is starting from a low base. The company has raised its dividend for 13 consecutive years, with a compound annual growth rate (CAGR) of nearly 7% over the last decade.

Lets take a closer look at why the company feels that such an increase at this time was warranted.

During a news conference on Friday, police said they found $1.5 million dollars of marijuana and it’s all thanks to some very observant employees.

In January, employees at the UPS Store on 23rd Street in Panama City called police as soon as they noticed three large packages that reeked of marijuana.

The boxes had come through the local mailing store for delivery.

“Since I’ve been a member of the police department this is the largest amount of marijuana that has been seized,” Panama City Police Department Corporal Kristain Shaw said.