Price is adjusted every day based on the wholesale price for the day. UFA will send you a copy of their price list for all fuels by email daily if you want it. Being the curious type I asked them how they set their prices.
Pricing.Group@ufa.com
Hello Dean,
Thank you for your email. I would like to share some information that I hope will bring some clarity regarding UFA’s cardlock pricing structure and setup.
UFA does not base our fuel pricing the same way that retail stations do, nor does UFA guarantee that our cardlock pricing will always be cheaper than other retail locations. Retail stations often participate in so called "price wars" to match each other in pricing, even if this means cutting into their margins. UFA on the other hand, bases our pricing on the daily changes that occur with wholesale refinery rack prices. We do not participate in the same competition space as retail stations. Refinery rack prices may go up or down, but it is a true representation of the wholesale market price changes that occur. When the market prices are increasing, UFA will be in line with the increases while retail outlets may hold on their pricing, creating the occasional price advantage, but eventually they have to catch up to market pricing. At the same time, when market prices decrease, UFA will be in line as well while retail market may hold at the higher price in order to recoup margin.
The refinery diesel rack prices have been rising rapidly since the start of the year, which is being reflected in your pricing. When the racks decrease in pricing, you will also see that change reflected in pricing. This is compared to retail where they may hold the same price for weeks or months, regardless of the wholesale pricing, which is generally determined by local competition within the retail market. UFA offers consistency and visibility into UFA Rack pricing. If you wish to have access to it, please let us know and we can add you to the email list. Then you will be aware of the daily price increases and decreases as they occur.
I would also add that it is possible that you do not have an appropriate discount on your account based on what your purchase patterns are for the year. Cardlocks are a volume-based businesses and I would recommend speaking with your local UFA Fuel Agency to discuss your fuel usage, volumes and pricing. They can determine if have an appropriate discount on your fuel.
When it comes to how your fuel price is displayed, UFA follows a cardlock industry standard that shows base price + applicable fuel taxes before GST. This is the standard that the cardlock industry follows. Since we do not compete in the same space as retail fuel stations that regularly post a price, we do not present the pricing in the same way. One advantage of this is that it allows cardlock customers to track the fuel costs before taxes and allows them to track any tax changes that may occur from year to year.
I hope this clears up your questions. If you have any other questions or concerns, please feel free respond to this email or to contact the Pricing Group at 403-570-4466 or your local UFA Fuel Agency for further details or information.
Thank you and have a great day,
Daniel Greco
Petroleum Pricing Analyst
UFA Co-operative Limited
T: (403) 570-4466
F: (403) 570-4018
UFA.com