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- 10 Aug
Fuel pricing decisions should be based on general consensus that fuel prices will continue to drop
Fuel Price Managers should base their fuel pricing strategies on the general consensus that retail gas prices will continue to drop through the rest of 2011.
USA Today picked up a story from the New York Times, proclaiming that gasoline prices are sure to continue to drop. The article predicts that next month, the national average for Regular Unleaded could drop to $3.25/gallon. That would be over $.40/gallon less than today’s national average. A spokesman from NUS Consulting, the often quoted specialist firm in energy sourcing, risk management and sustainability, was quoted as predicting that crude will fall from today’s price of $82 to between $55 and $60 before finishing the year at $70.
UPDATE 8/12/11 The Los Angeles Times published an article saying “motorists should see pump prices drop as much as 50 cents a gallon over the next several weeks…”.
Today’s US Energy Information Administration Short-Term Energy Outlook projects Unleaded fuel price national averages to drop $.09/gallon in the 3rd quarter of this year and reach $3.58/gallon; predictions for the 4th quarter include an additional $.14/gallon drop to reach $3.44/gallon. That’s about $.06/gallon lower than what the US EIA published last month. On August 8th, the US EIA announced the national average for Unleaded was $3.67/gallon, a $.04 drop from the previous week.
Fuel Price Management strategies should include consumer expectations that fuel prices will fall.
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