Dow Chemical Co, the biggest US chemicals manufacturer, said on Tuesday it will raise prices for its products by as much as 25 percent.

The company will also institute freight surcharges and cut back on output of some products because of soaring energy prices.

The price hikes are the second in a month by the Midland, Michigan-based company that makes thousands of products ranging from plastic wraps to car parts and insecticides.

Dow said it is also undertaking a series of cost reduction measures at its automotive unit because of the decline in North American auto sales.

Dow said its costs for oil and gas feedstocks and energy bills had jumped fourfold over the past five years to an estimated $32 billion this year.

Last month, the company hiked its prices by 20 percent in an effort to offset the steep jump in oil and gas.

'The price increases we announced on May 28 helped, but they were not enough to fully cover the additional costs we are now facing,' chairman and chief executive officer Andrew Liveris said in a statement.

From August 1, Dow will implement a surcharge of $300 per shipment by truck and $600 per shipment by rail in North America for customers buying chemicals, hydrocarbons and plastics. Freight charges will be applied in other regions later this year. - Reuters