Section 351.4. Valuation of sales for reporting petroleum revenue

(a) Sales at arm’s length. An oil company may use its actual sales prices for valuing sales of petroleum products, or in lieu of using the actual sales price, the Department will accept the Average Wholesale Price as determined and publicized by the Department. However, an oil company may not use the actual price for one petroleum product and the Average Wholesale Price for another; nor may the oil company use an average of its own prices to report and pay the tax.

(b) Sales not at arm’s length: direct use. Sales not at arm’s length and first sales resulting from direct use are to be valued using the consideration which would have been received in an arm’s length transaction with an unrelated person (market price). The Average Wholesale Price as provided in subsection (a) may also be used.