For products that Sprague invoices on a “net gallon” (or temperature compensated) basis, Sprague has begun providing a temperature correction “factor” on your price notification.

The correction factor provided is calculated daily based on actual terminal liftings and current product temperatures. The factor is being provided so you can more conveniently compare Sprague’s “net gallon” price to other suppliers’ “gross gallon” price. By simply multiplying the price provided by the factor indicated on your price notification, you can approximate what Sprague’s price would be on a gross gallon basis.

For example if the rack price is 2.4300 and the “factor” is .9971 the approximate gross gallon price would be 2.4230 (2.4300 x .9971). Conversely, if the factor was 1.0050 the approximate gross gallon price would be 2.4422 (2.4300 x 1.0050).

Please note that Sprague will continue to invoice these products based on net gallons loaded. The factor is provided simply to aid you in your price comparisons. Please also note that product temperatures can vary from load to load and from day to day and the factors provided on your price notifications are based on aggregate lifting information for the day. The actual correction factor on your load may differ from the one provided on your price notification.

Lastly please also remember that equal “gross gallon prices” are really only equivalent if the product temperatures are equal as well. As a result, Sprague continues to believe that net gallon pricing still provides the fairest and most transparent methodology for comparing competitive prices.

If you have any questions regarding this new information on your price notification please feel free to call the Sprague contract desk at 888-440-4944 for a more detailed explanation.