Iberia Gasoline Pricing

PwC Case Interview Prompt

For the past thirty years, the national government has set the retail price of gasoline for cars. Under a new market reform program the government has decided to allow the gasoline distribution companies to determine the retail price of gasoline for cars.

The Ministry of Transportation previously changed the price weekly to assure that the distribution companies make €.10 per liter in gross profit. Gasoline is refined to three levels Supra, High and Regular that refers to the level of octane and the degree to which the fuel is unleaded. All firms sell in proportion of 40%, 30% and 30% at the prices of €1.75, 1.60 and 1.50 per litter respectively, with the same gross profit (€.10).

In a deregulated environment, firms have the capacity to change prices hourly at any service station based on the pricing strategy.

The CEO of Iberia Gasoline has hired us to advise her on an appropriate strategy for pricing in the country. How would you structure your approach?

Case Study Overview

In this PwC case interview, the client is a gasoline distribution company in Iberia. The government has just eased regulations surrounding the pricing power of gasoline distributors. With the new freedom, the client wants to create a pricing strategy – you’ve been hired for the job.

You can use the Profitability Framework to get your framework started, but we advise against leaning solely on the basic frameworks. Use your knowledge of the frameworks and your own business acumen to create a custom framework that will help you solve the case and impress your interviewer.

The case has a qualitative difficulty score of 2/4. Prepping for a first round PwC case interview? This is a good practice case for that. The case has several math exhibits needing to be analyzed by you.

Interview Tips: PwC 

PwC is looking for candidates with the ability to problem-solve and home in on key issues that will help solve the specific problem.

Pay attention to how you respond to unexpected questions or figures – are you able to adapt quickly and respond thoughtfully to the issue at hand?

Make the most of this PwC case interview by identifying 1 area of growth that you can hone in your case practice.

Book a session with an ex-MBB coach for expert assistance in your PwC case interview preparation.