Terminal gate price
The wholesale price at the distribution rack — the last wholesale step before retail
Definition
The terminal gate price (TGP) is the price at which fuel is sold to buyers — typically road tanker operators or petroleum retailers — at the point of loading from a bulk fuel storage terminal (also called a fuel depot or fuel terminal). It is the last wholesale price before the fuel is delivered to individual petrol stations.
The terminal gate price sits between the refinery gate price (where product first exits a refinery) and the retail pump price. It is the reference point used by competition regulators in Australia and the UK to assess whether retail margins are reasonable.
Terminal gate vs refinery gate
The distinction matters because in many markets the two are different locations:
| Feature | Refinery gate price | Terminal gate price |
|---|---|---|
| Location | Exit of refinery | Bulk storage / distribution terminal |
| Who pays | Product trader / terminal operator | Road tanker operator / retailer |
| What it includes | Crude + refining cost | RGP + transport + terminal fees |
| Primary benchmark | Platts assessments (spot market) | Published daily/weekly by regulators or Platts |
| Published by (AU) | Not separately published | ACCC weekly by city |
In import-dependent markets with no domestic refinery (many Pacific Island nations, some sub-Saharan African countries), there is no refinery gate — the terminal gate price is effectively the first domestic price after import, and it incorporates shipping, port fees, and storage costs from the country of origin.
The ACCC petrol price monitoring page is one of the most transparent public sources of TGP data globally.
Australia: TGP transparency as a policy tool
Australia's weekly TGP publication by the ACCC is a deliberate policy instrument. The ACCC publishes TGPs for each major city alongside the average retail price, making the retail margin visible. In practice, the ACCC uses these data to identify retail price cycles and investigate potential collusion or excessive margins.
Australia's petrol price cycles — where prices spike at the start of the week and gradually fall — are largely a retail-margin phenomenon that occurs above the TGP. The TGP itself moves in response to import parity benchmarks (Singapore MOPS — Mean of Platts Singapore). The full cycle mechanics are covered in Australia fuel price cycles.
Key insight: When retail prices are consistently above TGP + taxes by more than the benchmark retail margin, competition regulators treat it as a signal of market failure. The difference between TGP and pump price is sometimes called the "retail price gap" or "retail over-recovery."
UK and European context
In the UK, terminal gate prices are published daily by S&P Global Platts and used by large supermarket forecourt operators to price their fuel. The UK's Competition and Markets Authority (CMA) cited TGP data extensively in its 2023 review of UK fuel markets, finding that the retail margin above TGP had widened abnormally during 2022–2023 and was not explained by cost increases alone.
In continental Europe, the main wholesale price references are ARA barges (Amsterdam-Rotterdam-Antwerp waterborne product prices) rather than a terminal-gate concept. These are closer to a refinery gate equivalent for the European market. The refinery gate price entry covers the European wholesale price chain.
Frequently asked questions
What is the terminal gate price?
The TGP is the wholesale price paid by fuel distributors when loading road tankers at a bulk storage terminal. It includes refined product cost and terminal throughput fees but excludes excise duty, VAT, and retail margin.
What is the difference between terminal gate price and refinery gate price?
The refinery gate price is at the first wholesale point leaving the refinery. The terminal gate price is measured further downstream at bulk storage terminals and includes pipeline/shipping transport and terminal storage fees on top of the refinery price.
Who publishes terminal gate prices?
Australia's ACCC publishes weekly TGPs by city. In the UK, Platts (S&P Global) publishes daily UK terminal prices. In the US, the EIA publishes weekly wholesale series. Practice varies significantly by country.
How does the terminal gate price relate to what I pay at the pump?
Pump price = TGP + excise duty + VAT/GST + retailer margin + delivery cost. In Australia's competitive urban markets, the gap above TGP (plus taxes) is typically 2–4 cents/litre of retail margin. In less competitive regional markets the gap widens.