Refining marker margin

bp started using a refining marker margin (RMM) from 2011 and have made certain changes to reflect the impact of planned divestments and changes in global supply and demand balances. The rule of thumb is approximate, and for 2022 is based on bp’s portfolio as shown below*

The RMM uses regional crack spreads to calculate the margin indicator and does not include estimates of fuel costs and other variable costs. The RMM is similar to the approach used by many of our competitors.

 

This page sets out how bp calculates its RMM.

 

RMMs are simplified regional margin indicators based upon product yields and a single “marker” crude oil deemed appropriate for the region. (e.g. Brent for Europe and WTI for the USMW). For example, being a single marker crude, the RMM does not include the impact of heavy Canadian crude in our US refining system.

 

Regional RMM descriptions

bp RMM crude unit capacity regional weightings (2022)

*As of 6 May 2022, historical global RMM numbers have been adjusted to the current 2022 portfolio basis and therefore may differ to previous historical RMM figures posted earlier. This is as a result of the portfolio changes announced in 1Q22 SEA for SAPREF (South Africa) and Whangarei (New Zealand) refineries stopping operations by the end of March. Historical RMM figures can be found in our quarterly results stock exchange announcements and in the group databook.