by John Keller | Jun 24, 2010 | Industry News, Retail Fuel Margins
According to the “This Week in Petroleum” report from June 23, 2010, the US Energy Information Administration reported that for the first time in six weeks, the U.S. average price for regular gasoline increased, moving up four cents to settle at $2.74 per gallon, 5 cents higher than last year. Although prices went up in all regions of the country, the range of change was considerable, from less than a half cent in the Rocky Mountains to seven cents in the Midwest. The average on the East Coast increased three cents to $2.69 per gallon, while the Midwest price jumped seven cents to $2.71 per gallon. Despite an increase of two cents, the average on the Gulf Coast remained the lowest of any region at $2.60 per gallon. Increasing less than a half cent, the average in the Rocky Mountains was essentially unchanged at $2.77 per gallon. The West Coast average climbed four cents to $3.03 per gallon, while the price in California moved up nearly a nickel to $3.10 per gallon.
The national average price for diesel fuel rose for the first time since May 10, 2010, climbing three cents to $2.96 per gallon, $0.35 above the price a year ago.
by John Keller | Jun 21, 2010 | Industry News, Retail Fuel Margins
The latest report from the US Energy Information Administration shows a continued drop in national fuel prices.
The U.S. average price for regular gasoline has declined for five consecutive weeks. Prices dropped by over 2 cents to hit $2.70 per gallon, 3 cents higher than a year ago. Over the last five weeks, the price for regular gasoline has decreased by over 20 cents per gallon. The averages fell in all regions of the country with the East Coast price falling by about three cents to $2.66 per gallon. The Midwest and Rocky Mountain averages slipped two cents to $2.64 per gallon and $2.77 per gallon, respectively. The lowest price was found in the Gulf Coast at $2.58 per gallon, after a decline of more than 3 cents. The prices on the West Coast and in California dipped a penny and a half to $2.99 per gallon and $3.05 per gallon, respectively.
The national average price for diesel fuel also fell for the fifth week in a row, dropping two cents to $2.93 per gallon, $0.36 above a year ago. Prices fell in all regions of the country as the East Coast declined two cents to $2.95 per gallon. The Midwest price dipped a cent to $2.89 per gallon. The Gulf Coast and Rocky Mountain averages fell about three cents to $2.87 per gallon and $2.99 per gallon, respectively. The average on the West Coast slid less than half a cent to $3.05 per gallon. In California, the average was unchanged at $3.07 per gallon.
by John Keller | Jun 14, 2010 | Fuel Price Management, Fuel Price Management Solutions, Fuel Price Optimization, Fuel Pricing Software, Fuel Pricing Technology
This weekend I decided to fill up my car at the local c-store down the street. The advertised fuel price was $2.59, a few cents higher than the store a mile away, but since I was in a hurry, I figured it was worth the time saved. Plus I knew I’d get the $.03 per gallon grocery store reward discount. I entered in my phone number and zip code at the pump, and noticed the price per gallon dropped to $2.52. I eagerly filled my tank, recognizing what a good deal I was getting, and wondering if maybe I was taking advantage of a system breakdown. When I was finished, I drove past the other pumps to see what price they were set to. Sure enough, all the pumps were $.04 less than the advertised price on the sign, and with my $.03 per gallon rewards discount, that explained the $2.52.
It occurred to me how much more business the store could be generating if they brought their price signs in line with their pumps, and let everyone know they had the best fuel prices in town. Or if they chose to, they could raise their pump prices to accurately reflect the advertised price on the sign.
Thankfully, with electronic sign and fuel pricing software solutions from Skyline Products, these scenarios are easily avoided. PriceAdvantage fuel pricing software makes it easy to price your electronic price signs in line with your pumps and POS systems. Whether you’re using VeriFone, Radiant, or Gilbarco POS systems, it’s easy to make sure they stay in synch with your fuel price signs and pumps. And that’s the way to make the most of your fuel pricing strategy.
by John Keller | Jun 9, 2010 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Retail Fuel Margins
In the June 8, 2010 edition of the US Energy Information Administration’s monthly “Short-Term Energy Outlook”, the EIA revised their forecast for summer unleaded retail fuel price national averages down $.15 per gallon. The EIA now projects the national average fuel price for unleaded will be $2.79 per gallon for the summer 2010 driving season that lasts through September 30. The summer gasoline price forecast is down primarily as a result of the lower crude oil price forecast. The average price in the summer of 2009 was $2.44 per gallon.
This downward projection is despite the estimates of reductions in production resulting from a 6-month deepwater drilling moratorium announced by Secretary Salazar in May. The reductions in crude oil production resulting from the moratorium are estimated to average about 26,000 barrels per day (bbl/d) in the fourth quarter of 2010 and roughly 70,000 bbl/d in 2011.
EIA projects crude oil prices will average about $79 per barrel over the second half of this year and rise to $84 by the end of next year.
EIA projects that OPEC, which did not change its production targets at its March meeting, will keep its crude oil production largely unchanged for the remainder of 2010. The countries that have the bulk of OPEC ‘s spare capacity – Saudi Arabia, Kuwait, and the United Arab Emirates – have maintained their quota discipline at current levels for an extended period and are expected to continue doing so barring significant changes in the world oil market outlook.
by John Keller | Jun 9, 2010 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Industry News
Today the US Energy Information Administration announced that US national average fuel prices were essentially unchanged this week. In their “This Week In Petroleum” report, the EIA announced that fuel price increases in the Midwest and on the West Coast offset price decreases in the East, Gulf Coast, and Rocky Mountains.
This week US national averages dipped less than half a cent, remaining essentially unchanged at $2.73 per gallon. The price was a dime higher than last year at this time. Price changes were mixed, with the East Coast seeing the largest regional decrease, of nearly four cents, to $2.69 per gallon. The averages on the Gulf Coast and in the Rocky Mountains declined about three cents to $2.61 per gallon and $2.79 per gallon, respectively. Moving up three and a half cents, the average in the Midwest reached $2.66 per gallon. The West Coast price rose three cents to $3.01 per gallon, while the average in California increased over four cents to settle at $3.07 per gallon.
Now we all wait to see the what impact hurricane season will have on fuel prices this summer. August and September are typically the most common for hurricanes in the US. In 2008 fuel prices were impacted dramatically by hurricanes, and according to EIA software simulations, the likelihood of experiencing disruptions similar to the 2008 hurricane season (outages of 65 million barrels) or worse is estimated to be 17 percent during the upcoming season, which is quite a bit higher than the probability expected during a normal season (5 percent).
