by John Keller | Mar 6, 2012 | Fuel Pricing Strategy, Retail Fuel Margins
The US Energy Information Administration reported their Short-Term Energy Outlook report today, and the administration expects regular‐grade retail fuel prices to average $3.79 per gallon in 2012 and $3.72 per gallon in 2013, compared with $3.53 per gallon in 2011. During the April through September summer driving season this year, prices are forecast to average about $3.92 per gallon with a peak monthly average price of $3.96 per gallon in May.
The value of futures and options contracts imply a 2 percent probability there will be a monthly average regular-grade fuel retail price of approximately $5.00 per gallon.
From a fuel price management perspective, if history repeats itself, these fuel price averages will have a high impact on fuel volumes, causing a significant decline in fuel volumes in 2012 and 2013.
by John Keller | Mar 6, 2012 | Fuel Price Management, Retail Fuel Margins
NACS held a media briefing on gas prices and one of the highlights was their report on the average retail fuel mark-up thus far in 2012. For the past six years going back to 2006, the retail fuel mark-up as a percent of price was between 5.1% and 6.0%. So far in 2012, the retail fuel mark-up has been only 3.8%.
It’s a well known industry fact that as retail fuel prices increase, c-stores suffer from low retail fuel margins. The long suffering fuel price increases so far in 2012 have been rough on retail fuel margins across the US. Couple the low margins with the continued trend of lowering fuel volumes, and certainly the c-store retail fuel business is not for the faint of heart.
As the retail fuel business continues to be more and more competitive, expect to see continued consolidation, where those who have invested in fuel price management systems are the only ones who are able to survive.
by John Keller | Mar 5, 2012 | Fuel Price Management Solutions, Fuel Price Optimization
In the US Energy Information Administration “Today’s Gasoline Prices” report released today, unleaded fuel prices in the Rocky Mountain region rose $0.14 per gallon, the highest of any region in the country. In two weeks, that’s a $0.24 per gallon increase in fuel prices for the Rocky Mountains.
The next highest fuel price increase for the week was $0.12 per gallon in the Midwest. Third highest increase was $0.08 per gallon in the “West Coast less CA” region. Overall, the US average unleaded fuel price increased $0.07 to $3.793.
by John Keller | Mar 1, 2012 | Uncategorized
High’s of Baltimore has been a loyal PriceAdvantage customer for several years, controlling their fuel price management process from headquarters and successfully providing a closed loop process for their retail fuel pricing business. Ben Jatlow was the original champion of the initiative and has been rewarded for his vision.
Ben will be the Vice President of Retail Operations for the company who just acquired the High’s of Baltimore c-store chain, The Carroll Independent Fuel Company.
The Carroll Independent Fuel Company selected High’s of Baltimore as their entrance into the company-operated retail fuel market. The Carroll Independent Fuel Company has grown to become one of the largest petroleum marketing companies in the US, distributing fuels to retail and commercial customers throughout the mid-Atlantic region. In the announcement of the acquisition, Carroll’s announced plans to grow the High’s brand throughout the mid-Atlantic.
We in the PriceAdvantage division of Skyline Products are proud to have High’s of Baltimore in our customer family, and we look forward to being a part of the bright future at High’s.
by John Keller | Mar 1, 2012 | Retail Fuel Margins
Kroger reported in their financial report retail fuel margins of $0.124 per gallon for the fourth quarter compared to $0.102 per gallon for the previous year. For the entire fiscal year, retail fuel margins were $0.139 per gallon compared to $0.122 for the previous year.
Fuel volumes grew at the same pace as the previous year.
