How a supplier calculates the cost of LPG to an end user?
In order to calculate the retail price of LPG, the reseller makes use of the following input:
* the current wholesale market price of LPG (quoted in $US);
* the cost per tonne payable to the terminal provider for providing the facility to store and collect the LPG;
* primary distribution costs from the terminal to the supplier’s depot;
* secondary distribution costs from the depot to the end user;
* overhead operating costs;
* if the supplier has provided the tank and installed it free of charge they will recoup these costs within the litre rate;
* the estimated annual usage;
* a margin or profit over and above the core costs
