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<br />Independent retailers of gasoline are limited to a maximum profit plus <br />operating expense price increase of 16.1 cents per gallon above the deliv- <br />ered cost, plus taxes.41 ERA can periodically adjust the margin to reflect <br />inflation and authorize up to 10 cents per gallon increases to allow high-cost <br />outlets to remain in business. Refiner/reseller owned outlets may charge <br />an additional 9.3 cents per gallon at their own stations.41 <br />Propane resellers may increase prices by 1/2 cent per gallon to reflect <br />non-product costs. Retailers are allowed a 1 cent per gallon increase to <br />petrochemical industries, utility customers, and synthetic natural gas <br />producers. For all other retail propane customers, a maximum of 7 cents <br />per gallon mark-up is allowed. 42 <br />Table 2-1 lists other petroleum products subject to price regulation <br />but which are currently exempt from price controls. ERA has adapted <br />pricing rules applicable to these exempted products which it could reimpose <br />anytime prior to October 1981. ERA also has authority to impose a differ- <br />ent set of price controls adopted under contingency plans designed to deal <br />with emerg,ency shortages. ERA has a great deal of flexibility in choosing <br />the manner. ,it uses to control prices, including altering the exempt st'ltus <br />of products, requiring shifts among products in the allocation of costs, <br />and de.signating a new base price date. <br /> <br />2.2.8.2 Product Allocation Controls. The major Congressional objective <br />under EPAA was establishment of a system for distributing both crude <br />petroleum and petroleum products should supply interruptions, like the <br />1973 OPEC embargo, occur. ERA has adopted two sets of detailed regula- <br />tions setting forth supply allocations for all petroleum products. One set <br />is in effect during normal periods unless a product is exempt, and the <br />other set of standby rules would be triggered by a supply-demand gap of <br />7 per cent or more.43 All refiners, wholesale-resellers, and retailers are <br />subject to allocation controls which are specific for each product at every <br />marketing level. <br />The objective of ERA's rules is to require suppliers to deliver certain <br />percentages of their available stocks to various priority status users, <br /> <br />2-14 <br />