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Question: 9 
What is the total allowed mark-up?

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 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 Most Zones
15.65
10.28
25.93
Zones 4a and 7b
15.65
12.67
28.32
Zones 10, 11, 12, 13 and 13a
10.65
10.28
20.93
Zones 11a, 11b and 14
10.65
12.67
23.32
Diesel Most Zones
14.07
14.03
28.10
Zones 10, 11, 11a, 11b, 12, 13, 13a and 14
10.07
14.03
24.10
Furnace Oil1 Most Zones
9.11
18.27
27.38
Zones 4a and 7b
11.11
16.27
27.38
Stove Oil Most Zones
12.11
20.28
32.39
Zones 4a and 7b
15.61
16.78
32.39
Zones 10, 11, 12, 13 and 13a
8.11
20.28
28.39
Zones 11a, 11b and 14
15.49
12.90
28.39
Propane2 Most Zones
63.09
Zones 1ANE, 1ANW, 1AS, 1a and 2  
71.59
Zones 3, 3a, 3b and 3c  
68.09
Zones 12, 13 and 13a  
51.09
1 Island zones only as the Board does not establish maximum prices for furnace oil heating fuel in Labardor
2 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 increased cost of supply due to the shutdown of the Come by Chance refinery is also captured in the wholesale mark-ups for motor fuels and furnace oil and stove oil heating fuels. The order relating to the Come by Chance refinery changes can be found here.

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

The total allowed mark-ups do not change weekly. Changes are made to the mark-up through an order of the Board, either on the Board’s own motion or an application by a retailer or wholesalers. 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 markups were recently reviewed in the 2019-2020 Petroleum Products Pricing Margin Review. Recent orders changing the mark-ups can be found at Order No's. P.P. 41 (2019), P.P. 46 (2020), P.P. 19 (2021) and P.P. 25 (2021).

 

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