Export netback

Also known as: netback pricing

Export netback is a common price-setting mechanism in which the price of a commodity is set in one place based on the value of the commodity in the market it is being sent to, minus the cost to move it to that market.

Export netback pricing can occur naturally through market dynamics, or it can be established directly through contract terms.

The Refinery Reference Desk includes content derived from our industry experts as well as from public data sources such as company websites. Nothing herein is intended to serve as investment advice. This material is based on information that we believe to be reliable and adequately comprehensive, but we do not represent that such information is in all respects accurate or complete. McKinsey Energy Insights does not accept any liability for any losses resulting from use of the content.



McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. By using this Site or clicking on "OK", you consent to the use of cookies.