| rack pricing |
Price which is the FOB (free on board) price for oil products leaving a refinery. The rack price does not include transportation costs and is used in conjunction with the DRC, differential reference code to group customers (ship-to parties) together for pricing purposes. A customer, for example, could pay the rack price, which is like a discount.
Rack prices can be subject to fluctuations and may then have to be corrected in the system.