Dow Chemical raising prices 20 percent

The specific size of price increases will depend on each product's exposure to rising energy, feedstock and transportation costs.

"Our first-quarter feedstock and energy bill leapt a staggering 42 percent year over year, and that trajectory has continued, with the cost of oil and natural gas climbing ever higher," Chief Executive Andrew N. Liveris said in a statement.

Dow spent $8 billion on energy and hydrocarbon-based feedstock costs in 2002. At the current rate, those costs would climb to $32 billion this year, the diversified chemical maker said.

"For years, Washington has failed to address the issue of rising energy costs and, as a result, the country now faces a true energy crisis, one that is causing serious harm to America's manufacturing sector and all consumers of energy," Liveris continued. "The government's failure to develop a comprehensive energy policy is causing U.S. industry to lose ground when it comes to global competitiveness, and our own domestic markets are now starting to see demand destruction throughout the U.S."

Dow said that in addition to the price increases, it is continuing to "aggressively" cut costs and speed up its competitiveness review for all businesses and manufacturing facilities.