Understanding and Adapting Price Structures (November 2024)

19th-21st November 2024

Does your price structures import parity pricing reflect the reality? Where does your Marketer Margin calculation come from?
How to model the Retail Margin?

CITAC’s interactive workshop will give participants an understanding of the principles underpinning import parity and pump
price parity pricing in Africa. Real-life examples from different countries will be analysed with a view to identifying ‘best practice’. Particular attention will be paid to how Importer, Marketer and Retailer Margins are calculated.

This 3 day course (only in french) will cover and discuss the following topics:

  • Background
    • Background: price regulation in Africa and beyond
    • Price Structures : what role do they play
    • Basic principle including cost plus pricing
    • IPP vs Pump Parity
    • Role of the Regulator
  • Import Parity Pricing
    • Base quotes (FOB/CIF) – quality and quantity
    • Freight
    • Insurrance
    • Dead freight
    • Trader margin
    • Ocean-going losses
    • Demurrage
    • Port fees
    • Inspection fees
    • Disport feess
    • Storage fees
    • Importer margin
    • Custom Fees
    • Density
    • Subsidies
    • IPPs and ex-refinery pricing
  • Products
    • Butane
    • Gasoline
    • Kerosene and Jet Fuel
    • Gasoil
    • Fuel Oil
  • Supply chain organisation
  • Pump Price Parity Pricing
    • Supply chain analysis
    • Transport cost breakdown
    • Real Industry Cost (CAPEX, OPEX)
    • Transport equalisation
  • Marketer Margin
    • Fixed and variable cost recovery
    • Marketer-owned assets
    • Working capital
  • Retailer Margin
    • Benchmark service station principle
    • Depreciation and useful economic life
    • Retailer margin
    • Shop margin
    • COCO/CODO/DODO models
  • Tax and Inflation
    • Tax
    • Under-recoveries
    • Inflation

Your Course Consultant: James McCullagh, CITAC Executive Director & Jeremy Parker, CITAC Head of Business Development