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HMRC internal manual

Oil Taxation Manual

HM Revenue & Customs
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PRT: valuation of crude oils and products - category 2 oils introduction

The difference between the two categories is that Category 2 oils do not have published and widely available price reports.

The list of oils currently within Category 2 can be found at OT05343. They are generally grades which;

  • have smaller volumes than Category 1 oils, and\or
  • are grades with unique properties that mean they are only used by a small number of users; so-called “niche grades”, and\or
  • are offshore loaded, and\or
  • have some other unique feature.

Consequently the way they are sold commercially varies enormously from kind to kind. The only practical way to calculate market values is on a “case-by-case basis”, crafting a method that fits the kind of oil in question to reflect, as far as practically possible, the unique features of that kind of oil’s usual sales contracts.