by John Keller | Feb 8, 2013 | Uncategorized
According to the latest OPIS report, retail fuel margins have dropped for the third consecutive week. Retail fuel margins across the country now average $.084 per gallon, which is $0.028 per gallon lower than last week.
The average retail fuel margin so far in 2013 dipped slightly from last week to $0.132 per gallon.
As a comparison, according to NACS, the overall fuel margin for 2012 was $0.184 per gallon, and the average fuel margin for the past five years was $0.169 per gallon.
The US Energy Information Administration provides a chart showing an annual consistent price increase from this time of year through May. From a fuel price management and fuel pricing strategy perspective, we can expect margins to remain difficult as we face the annual steady increase in retail fuel prices through the spring, and we see margins struggle to maintain pace with those price increases.
by John Keller | Feb 7, 2013 | Fuel Price Management, Fuel Pricing Strategy, Fuel Pricing Technology, Industry News
According to a new University of Michigan study, new vehicles sold in the US have a record miles per gallon rating, reaching 24.5 mpg. That is a full 1 mpg increase from January 2012, 2 mpg increase from January 2011, and 4 mpg increase from January 2008. A month by month detailed table can be found here.
Last month I wrote a summary of the US Energy Information Agency January report, where the USEIA explained that the primary cause for ongoing decreased fuels consumption in the US is increased auto fuel efficiency. This Michigan study correlates well to that study, and in combination, the two studies help us predict the future of US retail fuel sales volumes – we can expect lower volumes this year than last.
From a fuel pricing strategy standpoint, we can anticipate an increasingly competitive fuels market, as the overall fuels volume pie continues to shrink. The practice of fuel price management is not for the weary, and requires careful attention to monitor margins and volumes store by store, market by market, with a well executed fuel pricing strategies plan.
by John Keller | Jan 28, 2013 | Retail Fuel Margins
In their most recent report, OPIS revealed a drop in retail fuel margins of $0.021 per gallon to reverse a two week trend. The national retail fuel margin is now $0.150 per gallon.
The average retail fuel margin for 2013 remains the same as last week at $0.148 per gallon.
From a fuel price management and fuel pricing strategy perspective, these margin numbers represent what NACS calls typical fuel margins for an overall one year period. That’s welcome news as we start off the new year with much stronger margins than we did in 2012.
by John Keller | Jan 23, 2013 | Fuel Price Management, Fuel Pricing Strategy, Fuel Pricing Technology, Industry News
IGS is an independent retail supplier of natural gas, and a company with a vision of an energy independent United States. They now plan to build a network of CNG (compressed natural gas) fueling stations along I79 from West Virginia to Pennsylvania. IGS plans to finish this first corridor by the end of 2013, and continue to expand with more stations into the future.
IGS touts the main advantages of CNG fueling stations as 1) less expensive fuel than gasoline or diesel, and 2) refueling time is about the same as traditional fuels.
According to the US Department of Energy, there are now 558 CNG fueling stations in the US, excluding private stations. That is the fourth most common alternative fueling station behind electric, propane, and ethanol. But CNG expansion continues to be in the news, with municipalities announcing conversions of their fleets to CNG, announcements of more CNG fueling station networks being built, and auto manufacturers announcing the availability of stock CNG versions of their vehicles. It could be that 2013 becomes the year of CNG, laying the groundwork for a tipping point where we see a rapid increase of CNG vehicles on the road.
From a fuel price management standpoint, CNG presents another indicator of the overall traditional fuels volume pie shrinking, and the potential opportunity of a whole new fuels market for the taking. Which c-store chains will be the pioneers in this new opportunity, and which will follow?
by John Keller | Jan 22, 2013 | Fuel Price Management, Fuel Pricing Strategy, Retail Fuel Margins
The latest OPIS report shows that retail fuel margins increased for the second straight week, this time by $0.025 per gallon. The national average retail fuel margin is now $0.171 per gallon.
The average retail fuel margin for 2013 now stands at $0.148 per gallon.
From a fuel price management and fuel pricing strategy perspective, this is welcome relief to the margins we were dealing with at the turn of the new year. Current margins are now settling in to what NACS calls typical fuel margins for an overall one year period.
