Paragraph 1. The definition of "Base price" in § 150.352 is amended by changing the reference to "§ 150.358" to read "§ 150.355".

Par. 2. The definition of "Ceiling price" in § 150.352 is amended by deleting the phrase "§ 150.355 with respect to No. 2-D diesel fuel, No. 2 heating oil and gas line and".

Par. 3. Section 150.354 is amended in the first sentence of paragraph (c)(3) t read as follows:

§ 150.354 Ceiling price rule: Crude petroleum.

*

(c) Rule.

(3) Released crude.-Notwithstanding paragraph (c) (1) of this section. during a particular month new crude petroleum which could be sold at other than the ceiling price pursuant to paragraph (c) (2) of this section is produced from a property, the entire base production control level crude petroleum for that month may be sold at a price which exceeds the ceiling price provided that the maximum price charged per barrel of that base production control level crude petroleum does not exceed the lesser of (i) the current free market price for the particular quality or grade of crude petroleum as (ii) the price derived pursuant to the following:

Where:

Срт

1 [PmPe

Pmas P. + [C-1][

Pmax=Maximum price that may be charged for the crude petroleum (other than new crude) purchased from the property (dollars per barrel, Ceiling price of the crude petroleum (dollars per barrel);

P.

Cbpet Base production control level for property (barrels);

Cpr

Pm

Total amount of crude petroleum produced from the property during the month (barrels); and

Current free market price of the particular quality and grade of crude petroleum (dollars per barrel).

Par. 4. Section 150.355 is revised to read as follows:

§ 150.355 Price rule: Refiners.

(a) Applicability. This section applies to each sale of a covered product which is refined by a refiner or commingled for accounting purposes with a product refined by a refiner. This section does not apply to sales of covered products by a refiner-reseller which are subject to § 150.359.

(b) Rule. (1) A refiner may not charge to any class of purchaser a price for a covered product other than a special product in excess of the base price of that covered product except to the extent permitted pursuant to the provi sions of paragraphs (c) through (k) of this section.

(2) With respect to a sale at retail, a refiner-retailer may not charge to any class of purchaser a price for a special product in excess of the ceiling price for that special product in effect on October 31, 1973, except to the extent that the base price of that special product exceeds the October 31, 1973, ceiling price pursuant to the provisions of paragraph (g) of this section and except to the extent that a price may be charged in excess of the base price for the item parsuant to the provisions of paragraphs (c) cost. (2) For purposes of products purchased in arms-length transactions and shipped pursuant to a transaction between affiliated entities, the purchase price at the point of origin plus the transportation cost computed by use of the accounting procedures generally accepted and consistently and historically applied by the firm concerned. (3) For purposes of products purchased in a transaction between affiliated entities and shipped pursuant to an arms-length transaction, the cost of the product computed by use of the customary accounting procedures generally accepted and consistently and historically applied by the firm concerned plus the actual transportation cost. (4) For purposes of products purchased and shipped pursuant to a transaction between affiliated entities, the costs of the product and the transportation, both computed by use of the customary accounting procedures generally accepted and consistently and historically applied by the firm concerned. "Transactions between affiliated entities" means all transactions between entities which are part of the same firm and transactions with entities in which

e firm has a beneficial interest to the extent of entitlement of covered product reason of the beneficial interest.

(c) Allocation of increased costs.—(1) General rule.

(i) Special products.-In computing base prices for sales of a special product a particular level of distribution, a refiner may increase its May 15, 1973, lling prices to each class of purchaser each month beginning with October 1973 an amount to reflect the increased costs of imports and increased costs of ›mestic crude petroleum attributable to sales of that special product at that vel of distribution using the differential between the month of measurement nd the month of May, 1973 provided that the amount of increased costs used computing a base price is calculated by use of the general formula set forth subparagraph (2) and provided that any adjustment to a May 15, 1973, selling rice for a special product must be applied in full penny increments in accordnce with the provisions of § 150.355 (g). To the extent that a refiner does not locate its increased costs for a special product pursuant to this provision, it ay include that part of its increased costs attributable to sales of that special roduct at that level of distribution in computing its base prices for covered roducts other than special products pursuant to paragraph (c)(1)(ii) of this ection.

(ii) Other than special products.-In computing base prices for a covered prodet other than a special product, a refiner may increase its May 15, 1973, selling rice to each class of purchaser each month beginning with October 1973 by an mount to reflect the increased costs of imports and increased costs of domestic rude petroleum attributable to sales of covered products other than special roducts or sales of special products not otherwise allocated pursuant to pararaph (c)(1)(i) of this section using the differential between the month of easurement and the month of May, 1973, provided that the amount of increased osts used in computing a base price is calculated by use of the general formula et forth in paragraph (c) (2) of this section and provided that the amount of ncreased costs included in computing base prices of a particular covered product ther than a special product must be equally applied to each class of purchaser. n apportioning the total amount of increased costs allocable to covered products ther than special products, a refiner may apportion the total amount of ncreased costs to a particular covered product other than a special product t a particular level of distribution in whatever amount he deems appropriate. (2) General formula.

D=The dollar increase that can be applied to each May 15, 1973 selling price of the covered product concerned to each class of purchaser to compute the base price to each class of purchaser.

p=The unit price of a covered product other than crude petroleum. For imported products, the landed cost.

q=The quantity or volume of a covered product other than crude petroleum. C=The unit cost of crude petroleum.

Q=The quantity or volume of crude petroleum.

4 3

S=Σ Σ[Pi] which is the total sales of all covered products other than i=1 j=1

3

crude petroleum.

S1 = [Pi; qii] which is the total sales of a specific covered product or j=i

products other than crude petroleum.

SP which is the total sales of a specific covered product or products other than crude petroleum at a specific level of distribution. [C'Q1 — C x © Q x° — X ° Q x 1 — Q *°) ]

A=

A = — [Cr'Q ×

The type of covered product is referenced by the subscript;:

=1 represents No. 2 heating oil.

=2 represents gasoline.

i=

3 represents No. 2-D diesel fuel.

4 represents all covered products other than special products. The category of purchaser or level of distribution is referenced by the subscript ;=1 represents sales to ultimate consumers.

;=2 represents sales to retailers.

;=3 represents sales to wholesalers.

The origin of a covered product is referenced by the subscript ✩ :

n=

=1 represents domestic origin.

=2 represents foreign origin or import.

SUPERSCRIPTS

The consecutive three-month period of the preceding year such that the mid month of the period corresponds to the current month.

0= The month of May 1973.

t=The month of measurement. (The month of measurement is the month prece ing the current month.)

u=The current month. Quantities calculated for the current month will be est mates which should be based on the best available data.

MATHEMATICAL TERM

Σ Represents a calculation by summing with respect to the designated subser all terms designated in the superscript.

(d) Carryover of Unused Costs.—(i) If in any month beginning with Octobe 1973, a firm establishes a base price for a special product at a particular le of distribution which does not include the entire amount of the dollar increas calculated pursuant to the general formula and allowable under paragra (c) (1) (ii) of this section the unused amount is not used to increase a May! 1973, selling price pursuant to paragraph (c) (1) (ii) of this section the un portion of the dollar increase may be added to the May 15, 1973, selling pr to compute the base price for that special product at that level of distribut r a subsequent month provided that the unused portion is adjusted by m ying it by ratio that the quantity of the special product in the initial month alculation bears to the quantity of that special product in the subsequent mon

of calculation.

(ii) If, in any month beginning with October 1973, a firm establishes base pr for covered products other than special products which do not reflect the ent amount of increased costs of imports and increased costs of domestic cr

• કરતાં

troleum calculated pursuant to the general formula and allowable under ragraph (c) (1) (ii) of this section, the total amount of those unused costs may used to compute base prices for covered products other than special products a subsequent month provided that the amount of the unused costs included computing the base prices of a particular covered product other than a special oduct is equally applied to each class of purchaser.

(e) Affiliated entities.-For purposes of this section, transactions between filiated entities may be used to calculate increased costs. Whenever a firm uses landed cost which is computed by use of its customary accounting procedures, e Council may allocate such costs between the affiliated entities if it determines at such allocation is necessary to reflect the actual costs of those entities or the uncil may disallow any costs which it determines to be in excess of the proper easurement of costs. Costs incurred in transactions in which covered products e obtained which are resold without being refined by the firm or commingled r accounting purposes may not be included in the calculation of the general rmula.

(a) Applicability. This section applies to each sale of a covered product her than a sale by a refiner which is subject to § 150.355. Sellers subject to is section are refiner-resellers, resellers, reseller-retailers and retailers. (b) Definitions.-As used in this section

"Increased costs" means the difference between the weighted average unit ost of an item in inventory during the current pricing period and the weighted verage unit cost of that item in inventroy on May 15, 1973. If a particular em was not in inventory on May 15, 1973, the date for computing the cost the most recent day preceding May 15, 1973, when the seller had the item in ventory.

"Pricing period" means any time period at the close of which the seller, in ccordance with its customary and historical pricing practices and at its lowest stomary pricing levels would normally reprice its covered products. (c) Price rule.-(1) A seller may not charge a price for any item subject to his section which exceeds the weighted average price at which the item was lawlly priced by the seller in transactions with class of purchaser concerned on ay 15, 1973, plus an amount which reflects on a dollar-for-dollar basis, increased osts of the item.

(2) Notwithstanding paragraph (c)(1) of this section, with respect to special roducts sold at retail, the increased costs may only be added to the May 15, 973, selling price in penny increments to the ceiling price in effect for that special roduct on October 31, 1973. With respect to special products sold at other than etail, the increased costs may only be added to the May 15, 1973, selling price A full penny increments to the October 31, 1973, selling price of that special roduct as computed in paragraph (b) (3) of § 150.355.

(3) A seller which charges a price for a covered product other than a special roduct which exceeds the weighted average price at which the product was wfully priced by the seller in transactions on May 15, 1973, must decrease e price of that product whenever the increased costs in the current pricing eriod are less than the increased cost in the most recently completed pricing riod.

(4) Notwithstanding subparagraph (c)(3) of this section with respect to a speal product sold at retail, whenever the increased costs in the current pricing peod are less than the increased cost in the most recently completed pricing peod the seller must decrease the price of that product in full penny increments to e ceiling price in effect for that special product on October 31, 1973. With repect to a special product sold at other than retail, whenever the increased costs the current pricing period are less than the increased costs in the most recently ompleted pricing period the seller must decrease the price of that product in full enny increments to the October 31, 1973, selling price computed pursuant to the rovisions of paragraph (b)(3) of § 150.355. Any other adjustment in price or a special product sold at other than retail below the October 31, 1973 selling rice or other authorized price must be applied in full penny increments. (5) In computing the May 15, 1973, selling price, a firm may not exclude any mporary special sale, deal or allowance in effect on May 15, 1973. If no transacon occurred on May 15, 1973, the most recent day preceding May 15, 1973, when transaction occurred shall be used for purposes of applying the price rule. If

the seller first offered an item for sale after May 15, 1973, and prior to the fective date of this subparagraph, the first day when the item was offered fr sale shall be used for purposes of applying the price rule.

(d) Certification.-Each seller with respect to each sale of gasoline other tha a retail sale must certify in writing to the purchaser the octane number of the gasoline sold.

Par. 8. Section 150.361 is amended by adding a new paragraph (b)(3) to real as follows:

(3) Resellers.-A reseller, reseller-retailer, retailer or refiner-reseller ofe ing a new item, shall for purposes of applying the price rule § 150.359 (c) trmine the May 15 selling price for that item as the price at which that item priced in transaction at the nearest comparable outlet on the day when the ite is first offered for sale. For purposes of computing the "increased costs," the east of the item first offered for sale shall be used rather than the May 15, 1973 cust Par. 9. Section 150.362 is revised to read as follows:

§ 150.362 Price information and posting.

(a) Each seller of covered products shall maintain records of its base prices base production control levels, and ceiling prices and shall make available upo request by a customer, the base price, base production control levels or ceiling price of any item being offered for sale to that customer.

(b) No later than 11:59 p.m., local time, November 7, 1973, each retail selle of gasoline and No. 2-D diesel fuel shall post the maximum permissible pri allowed to be charged pursuant to § 150.355 (b) or § 150.359 (c) in a prominest place on each pump used to dispense gasoline or No. 2-D diesel fuel in retail sale and the octane number of that gasoline. Whenever an adjustment is made to maximum permissible price each retail seller must adjust his posted price. P6ing must be in the form and manner prescribed by the Cost of Living Comel Par. 10. Section 150.363 is amended by adding a new paragraph (a)(3)Þ read as follows:

§ 150.363 Reports and recordkeeping.

(a) Reports.

(3) No. 2 heating oil sellers.—Any retail seller of No. 2 heating oil whic increases the price of No. 2 heating oil pursuant to § 150.355 (b) or § 150.359 must submit a report in accordance with the forms and instructions issued by the Cost of Living Council by the fifth day following the date on which the price is increased.

[FR Doc. 73-22275 Filed 10-15-73; 4:52 pm]

[From the Federal Register, Oct. 26, 1973]

TITLE 6-ECONOMIC STABILIZATION

CHAPTER I-COST OF LIVING COUNCIL

[Phase IV Price Ruling 1973-1]

PHASE IV PRICE RULINGS

Subpart Land Loss-Low Profit Rules

Facts. Company A is a firm consisting of the parent and four consolidated enti ties, engaged in certain manufacturing and wholesaling activities. Company ully qualifies under § 150.201 to use the loss and low profit rules. However, tivities of the firm include the sale of petroleum products covered by the price les of Subpart L of Part 150 and § 150.351 (b) states that Subpart L supersede he provisions of § 150.201 "with respect to sales and leases subject to this Subpart."