What is an OPIS rack price?
It is a published wholesale price for one product at one rack market, built from what suppliers post. In its explainer on the wholesale rack market (OPIS), OPIS says rack transactions are “approximately 8,000 gallons” and are made “at 1,500 terminals in nearly 400 market locations across the U.S.” Each supplier sets its own rack price; OPIS collects those postings and reports figures for each market, such as the average of all supplier postings and the low.
For how a supplier arrives at its own posting, see the wholesale pricing guide for suppliers.
Which OPIS numbers will I see, and what is each used for?
You will see several price types, and the one your contract names matters most.
| Price type | What it is | Where it tends to show up |
|---|---|---|
| Branded rack | Supplier postings for fuel sold under a refiner’s brand | Branded supply agreements |
| Unbranded rack | Supplier postings for fuel sold without a brand | Unbranded supply agreements |
| Average | The average of supplier postings in a rack market | A common contract index |
| High | The highest posting in the market | Reading the spread in a market |
| Low | The lowest posting in the market | Contracts that want the cheapest posted price |
| Bottom line | OPIS: pricing “for rack transactions conducted below the posted OPIS Rack Low” | Reference for deals below the posted low |
| Low 2 / Low 3 average | OPIS: an “independently-calculated Low 2 and Low 3 average benchmark” | Contracts that want a benchmark near the low end |
The last column is our summary, not an OPIS statement.
OPIS also reports both gross and net: gross is the “full wholesale posted rack price with no discounts reflected,” and net is the “wholesale posted rack price with prompt payment discounts included.” OPIS does not publish a product called “Gross Contract Average”; that is shorthand for three choices a contract can combine: gross, the average, and the approximately 10:00 a.m. ET contract-average snapshot described below.
Which average, and at what time?
“OPIS average” is not one number. The same market has several averages, each a snapshot at a different time. OPIS lists these on its gasoline and diesel rack prices page:
- A contract average: “a snapshot of the average of all supplier postings in each rack market at approximately 10:00 a.m. eastern time.”
- A closing average: a snapshot “by 4:59 p.m. eastern time.”
- A calendar-day average: a snapshot “at 11:59 p.m. eastern time.”
OPIS says it “freezes” supplier prices and averages by rack at key time intervals. Prices also move during the day: OPIS says on its rack price overview that wholesale rack prices “move up or down each day at 6pm,” and in volatile markets a supplier can repost more than once a day (rack pricing). So the morning, closing and calendar-day averages on the same date can differ.
What does “OPIS average plus 3 cents” actually pay?
Say your contract reads: “OPIS contract average (gross), unbranded ultra-low-sulfur diesel, one named terminal, plus 3.0 cents per gallon.” The numbers below are illustrative, not OPIS data or any customer’s contract.
| Step | Illustrative value |
|---|---|
| Terminal named in the contract | Terminal A |
| Contract average snapshot for that day (about 10:00 a.m. ET) | $2.5000 per gallon |
| Adder in the contract | +$0.0300 |
| Price per gallon before freight and taxes | $2.5300 |
| Gallons loaded | 8,000 |
| Product cost | $20,240.00 |
Now change one word (also illustrative). If the contract named the closing average and it printed $2.5400, the price would be $2.5700 and the load $20,560.00, a $320.00 difference on the same 8,000 gallons. If it named the net average instead of gross, the printed number would differ again by the prompt payment discount. The contract has to say five things, and the invoice should show which of them it used:
- Product and grade (and branded or unbranded).
- The statistic: average, low, high, or Low 2/3 average.
- Gross or net.
- The snapshot time, or the day’s closing figure.
- The rack market or terminal, and which date’s price applies to a load.
If a contract leaves any of these open, write it down before the first invoice. If the terminal is a carded terminal, you also need the supplier’s card and allocation before the price matters. To check an invoice against a quote, how to compare bulk fuel quotes shows the comparison.
If you are setting up as a buyer at the rack for the first time, how to start a fuel distribution business shows how a posted rack becomes your first priced load.
Why does my price differ from the OPIS number I see?
Usually it is the snapshot, the market, or what sits on top of the index. Three common causes:
- You are looking at a different snapshot than the contract names.
- The contract names a different terminal or rack market than the one you checked. Regional spread is real, and two terminals in one state can post different prices on the same day.
- The contract adder, freight or taxes are on top of the OPIS number.
Ask, or tell your buyer, which published figure, for which date, the invoice used.
How is OPIS different from Platts?
They answer different questions. OPIS rack prices are built from supplier postings at terminals and reported by rack market. Platts is best known for spot assessments, which usually cover a wider region than a rack price for one city or terminal. So an index that points at a rack average and one that points at a spot assessment are not interchangeable. If a contract names Platts, confirm whether it means a spot assessment, and what rack-level adjustment is in the formula.
How Energy Connect handles it
This post is general guidance on reading OPIS rack prices. It does not describe any Energy Connect feature. Before the first load on an OPIS-plus contract, check that it names the five terms above, and that the invoice shows which figure it used.