The total allowed mark-up is added to the benchmark price of a product to establish the base price for that product in the base zone. The total allowed mark-up is meant to cover all costs in getting the product from its source to the consumer and includes both a wholesale mark-up and retail mark-up. The total allowed mark-ups do not change weekly.
The current wholesale, retail and total allowed mark-ups are set out below.
Summary of Wholesale, Retail and Total Allowed Mark-ups (cpl)
Product
Applicable Zones
Wholesale
Mark-up
Retail
Mark-up
Total Allowed
Mark-up
Regular Gasoline
All Zones
15.65
14.28
29.93
Diesel
All Zones
14.07
18.03
32.10
Furnace Oil1
All Island Zones
9.11
22.27
31.38
Stove Oil2
All Labrador Zones
9.11
22.27
31.38
Propane3
Most Zones
69.6
Zones 11a, 12, 13, 13a and 14
56.09
1 Island zones only as the Board does not establish maximum prices for furnace oil heating fuel in Labrador 2 Labrador zones only as the Board does not establish maximum prices for Stove Oil heating fuel on the Island. 3 The total allowed mark-up for propane is not broken down into wholesale and retail portion.
The wholesale mark-up reflects the cost of the wholesaler to supply product to retailers and includes costs related to:
marine freight
operation of marine terminals
tractor trailer freight.
The retail mark-up reflects the operating cost of the retailer to supply product to the end consumer/customer and includes costs related to:
capital costs and depreciation
fuel and vehicle operating costs
insurance
office, administrative and other costs
rent
repairs and maintenance
transaction fees
utilities and communications
wages and salaries
Changes are made to the mark-ups through an order of the Board, either on the Board’s own motion or an application by a retailer or wholesaler. When adjusting the wholesale and retail portions of the total allowed mark-up the Board is required to consider whether there have been changes in transportation costs, volume of sales, storage costs, distribution costs and inventory rates since the last adjustment in the mark-up. The Board has no authority to intervene if a wholesaler or retailer decides to discontinue the sale of product on the basis that the cost of supply cannot be recovered.