Terms Related to Retail Gasoline The following are some terms that are related to retail gasoline:
Branded Fuel: Branded fuel is gasoline that is sold under an easily recognized company name. Branded and unbranded fuel may come from the same location, but marketers and consumers alike may pay more to receive their product from a known company.
Dealer Tank Wagon: Dealer tank wagon, or DTW, refers to the cost of gasoline that retail locations pay. DTW is based on the rack price. It also includes additional fees, like transportation costs.
Downstream Operations: Downstream operations refers to activities having to do with refining, conveying, and selling gasoline and similar petroleum products.
Marketer: A marketer is a business that sells diesel, gasoline, and other petroleum to the general public.
Multiple Product dispenser: Multiple product dispensers, or MPDs, are the kinds of pumps found at most gas stations. These pumps usually have six hoses, and they tend to distribute all three levels of unleaded gasoline. Some MPDs offer E85 and diesel fuel, too.
Rack Price: Rack price is the cost of petroleum products that are obtained from refineries. Rack price is based on the spot price. It also includes additional fees, like transportation costs and a profit for the refinery.
Retail Price: Retail price is what gas stations and other marketers charge for petroleum products. Retail price is based on the dealer tank wagon price, plus profit for the distributor.
Spot Price: Spot price refers to the cost of crude oil on the commodity market. Petroleum is typically priced per barrel.
Throughput: Throughput is a measure of how much unleaded gasoline, diesel, and other petroleum products a location sells. Throughput is often gauged by the gallon.
Upstream Operations: Upstream operations refers to activities having to do with searching for and producing crude oil.