PACIFIC NORTHWEST FUEL PRICING

&

LOGISTICS 101PRESENTED BY: ASSOCIATED PETROLEUM PRODUCTS, INC FRANK PUPO, JR

WHO IS APP?

Fuel Services

Lubricants

Retail

Alternative Energy Equipment & Spill Control

LOGISTICS

Where does product come from? What makes up a refined barrel of crude?

Alaska

Canada

Saudi Arabia

Mexico

LOGISTICS

Local Supply Points

Main Terminals

Tacoma

Seattle

Anacortes

HISTORY OF PRICING

How are prices established?

Crude oil well

is drilled

Crude oil is sold off a benchmark (i.e. NYMEX) in contracts to refiners

Crude contract

price becomes refiner input cost

Refiners use cost, futures, terminal fees, local market conditions to establish rack

pricingRack prices

become distributor product

cost

Distributor product cost and transportation costs create

end user price

HISTORY OF PRICING

Distributor Pricing Breakdown

Rack Cost

Freight

Margin

Taxes Current Fuel Taxes

WA State Hazardous Substance Tax 0.7%

Federal Oil Spill $0.0019

Federal LUST $0.0010

Federal Excise Tax$0.1830gas/$0.243dsl

State Excise Tax $0.3750

B & O Tax (Indian Tribes are exempt B&O Tax) 0.484%

HISTORY OF PRICING

What drives market prices?

National & global crude supply

Local product supply

Value of the US Dollar

Futures market

Speculation

Product demand

Pipeline & Terminal shut downs

BRANDED VS UNBRANDED

Are the markets the same?

What causes the price differences?

Funding & Image Programs

Supply

Demand

Additive What about diesel?

Historical Fuel Trends

$1.5500

$2.0500

$2.5500

$3.0500

$3.5500

$4.0500

$4.5500

12/31/2006 12/16/2007 11/30/2008 11/15/2009 10/31/2010

Branded Gas Unbranded Gas Diesel

BRANDED VS UNBRANDED

ALTERNATIVE FUELS

Market

Federal mandates

9 billion gallons in 2008 to 36 billion gallons by 2022

WA mandates

Aggregate B2

State of the Industry

Why E10?

Product Supply

Feedstock

Soy

Canola

Waste Oil

CONVENIENCE STORES

HAZARDS & SAFETY GUIDELINES

PRESENTED BY: ASSOCIATED PETROLEUM PRODUCTS, INC

TARYN MILLER

C

KEY HAZARDS

Key hazard areas/safety concerns at convenience stores:

Slips, Trips & Falls

Robbery

Gasoline Dispensing Operations

SLIPS, TRIPS, & FALLS

Key Over one million people in the U.S. experience a significant slip, trip, or fall each year.

An average of 17,000 Americans die from their slip and fall accidents

Falls account for one quarter of serious injuries in the workplace.

Seventy percent of slips and falls occur on level ground.

Questionable slip and falls claims rose 51 percent from the first half of 2009 over the first half of 2008, according to the National Insurance Crime Bureau.

SLIPS, TRIPS, & FALLS

Causes

Outside the store:

Potholes in lot/dispensing area

Speed bumps

Curbing – painted yellow or other contrasting color?

Other changes in elevation – unlevel sidewalk panels, wide cracks in concrete

Ice/snow and other weather conditions

Inside the store:

Drink dispensing area – mat present?

Aisle ways – keep clear of boxes, etc

Water tracked in from outside – non-skid mats at door recommended

SLIPS, TRIPS, & FALLS

If you have a slip & fall onsite:

Injured persons should be attended to immediately; show compassion but never admit fault.

Accident/incident investigations should be conducted and documented immediately (see sample form provided).

Take immediate steps to prevent further accidents, if possible.

File a claim as soon as possible, even if it does not appear as though you will be considered responsible for the injury.

Take photos of the area fall occurred, even if nothing appears wrong.

ROBBERY

Lighting is one of the greatest deterrents to robbery – make sure all lights functioning properly

Cash register should be near front door, with unobstructed outside visibility

Limit amount of money in register – drop into safe once exceeded

Seventy Make eye contact, pleasantly greet customers as they enter the store. Easy to spot an issue ahead of time.

ROBBERY

Signs to have:

“Employees do not have access to the safe”

Height indicators for doors

“Cash is kept to a minimum in this store”

ROBBERY

How Robbery Reaction Guidelines (handout)

Control ignition hazards during vehicle fueling

No smoking, shut off engines, cell phones, static electricity, etc.

GASOLINE DISPENSING OPERATIONS

Filling portable containers

Prevent filling of unacceptable containers

Make sure container is on ground, not in back of truck, etc.

Filling Emergency response procedures

How to operate emergency pump shutoff controls, F.D. phone #

How to respond to small fuel spills (placing absorbent material on spilled fuel)

GASOLINE DISPENSING OPERATIONS

Filling Emergency response procedures

How to operate emergency pump shutoff controls, F.D. phone #

How to respond to small fuel spills (placing absorbent material on spilled fuel)

How to use a fire extinguisher

Remember PASS acronym

Pull, Aim, Squeeze, Sweep

CONVENIENCE STORE SAFETY

No substitute for training

Make sure every employee knows site specific procedures and safety rules

Complete regular site inspections, document any issues (handout)