Retail and Wholesale Fuel/Refineries

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Question
How do Refineries sell their product. Do they go through a gasoline broker or do they have their own salesman?

Answer
Unbranded gas station price sign
Unbranded gas station  
Most major oil company refineries sell their gasoline direct through their branded retail stations at Dealer Tank Wagon prices or at their rack with discounts depending on the destination of the delivery.  That pricing method is known as zone pricing and is kept very secretive as to how it operates.

They also sell unbranded gasoline to wholesale accounts including "jobbers", who in turn will either re-sell or retail to non-branded stations.  Each of the companies have wholesale and retail sales divisions operating on different pricing levels depending on the location of the refinery and its proximity to receiving crude oil by pipeline, rail cars or cargo ships.

Non-major oil companies will sell gasoline in the spot market and differentiate their pricing by the amount of supply and demand in their respective markets.  They usually have rack sales reps wholesaling gasoline to anyone on a credit or cash basis.

Retail and Wholesale Fuel

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Bob van der Valk

Expertise

Bob van der Valk recently joined the Bakken Oil Business Journal as their Managing Editor of the bi-monthly print and digital journal editions, connecting business and resources for the greater Bakken area. Bob has collaborated & contributed to the editorial voice of the Bakken Oil Business Journal since its inaugural issue in May of 2012. He has been the source of information on the petroleum industry, as a whole, in addition to paying specific attention to the booming growth of Oil & Gas industry in the Bakken Oil Shale Region. Bob is quoted regularly in the national media for his expertise on petroleum industry matters and fluctuations in the prices of petroleum products. Bob has over 50 years of experience in the downstream refining and marketing sector of the petroleum industry with particular expertise on the U.S. western region. He is also a regular guest on Tom Egelhoff’s “Open for Business” radio program on KMMS-AM 1450 from Bozeman discussing current events in the petroleum industry for the region.

Experience

I have over 50 years experience in both the major and independent side of the refining and marketing side of the US petroleum industry.

Publications
Bakken Oil Business Journal

Education/Credentials
Associate in Arts degree at Cerritos College, Cerritos, CA

Awards and Honors
California Real Estate Broker

Past/Present Clients
4Refuel LLC, Lynnwood, Washington

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