What is a terminal gate price?
A terminal gate price (TGP) is a wholesale price for bulk supply
of petroleum products (as defined in the Oilcode) from a fuels
terminal that is a shipping facility or a facility connected by
product transfer pipeline to a shipping facility, where for spot
purchases the transfer of ownership occurs once the petroleum
products are loaded into a customer's truck at the terminal loading
rack (ie at the "terminal gate").
Terminal gate prices are typically subject to certain conditions
that relate to the nature of supply, including minimum volume (as
it is a wholesale sale) and payment terms. Specific conditions for
Caltex terminal gate prices are noted on the web page that lists
current Caltex TGPs.
TGPs in Victoria and Western Australia are subject to state
regulation, so are listed in separate sections of the Caltex TGP
web page. In Victoria, the quantum of the TGP is affected by
regulation. In both Victoria and Western Australia, regulation sets
out certain conditions under which TGP sales are made.
Where does Caltex's terminal gate pricing policy apply
and how do I obtain supply?
Prices and terminals are listed under Fuel Pricing
on the Caltex website. Procedures for obtaining supply are also
provided on the internet site.
How is the TGP calculated?
The TGPs for declared petroleum productsl are based on Singapore
product price benchmarks. To these are added allowances for quality
to meet Australian standards, freight to Australia, insurance and
loss, wharfage and port charges, terminalling costs and a
wholesaling margin. TGPs are reviewed regularly and may change
according to competitive forces.
How competitive is this price?
The TGP is a competitive price for spot supply and is set taking
into account any posted prices from independent importers as well
as other competitors in that location. Large bulk customers, such
as independent retail service station chains or large commercial
customers, may be able to negotiate a slightly better price. For
more information on pricing for petroleum products,
please visit the Fuel Pricing
section on the Caltex website.
Can customers not covered by a current term supply
contract buy at TGP?
Yes, in addition to those customers with a current term
supply contract with Caltex under which the purchase price is
derived from the TGP, the TGP is also available to customers not
covered by a current term supply contract (spot customers),
provided that they comply with Caltex's Terminal Access Procedures,
which relate mainly to health and safety and environmental
requirements, and standard ordering and scheduling procedures.
Can Caltex retail and reseller franchisees buy at
TGP?
Yes. A Caltex retailer or Caltex reseller franchisee with a term
supply contract in force as at 1 March 2007 may, before 30th April
2007, make a request to Caltex to offer a purchase price that is
derived from the TGP (that is, the posted TGP plus additional
amounts charged for additional services minus any discount
offered). For examples of additional services, please refer to the
question below "What are additional services?"
What are additional services?
The TGP is a spot price ex-terminal for a full tanker load (not
less than 35,000 litres), paid for in cash. It is a price for fuel
only and does not include any additional services.
If Caltex provides additional services, these are subject to a
supply or franchise contract. These services may include credit,
delivery, brand (which includes signage and access to intellectual
property, including business systems and training), access to
Caltex fuel cards, increased security of supply and equipment
rental.
Does TGP increase price transparency?
The Caltex TGP assists with price transparency, as consumers
will know the price available at the terminal for spot fuel
purchases and are able to compare retail and terminal gate prices.
The difference between the two prices should cover a wide range of
wholesaling and retailing and costs and return on investment but
often fails to do so, particularly in major urban areas and many
larger country towns where there is heavy discounting.
The Caltex TGP also increases price transparency for its
customers who purchase under a term contract under which the
purchase price is derived from the TGP.
The TGP complements data on retail prices in country towns and
capital cities across Australia, which has been published as an
initiative of the Australian Institute of Petroleum for several
years. Caltex has also published historical pricing data on its
internet site since 1996.