Retail fuel margins rise sharply this week

  • Retail fuel margins rise sharply this week

    According to the latest OPIS report, retail fuel margins saw their biggest increase in 12 weeks, with a $0.094 per gallon rise. Average retail fuel margins across the USA now stand at $0.218 per gallon, the highest margins all May.

    Average year to date fuel margins were up slightly to $0.169 per gallon. Quarter to date fuel margins reversed their six week trend and increased to $0.183 per gallon. The six week average for fuel margins now stands at $0.161 per gallon.

    A large part of this gain in fuel margins can be attributed to the mid-west refineries coming back online so that costs can come down, allowing fuel retailers to temporarily hold steady with retail fuel pricing and recoup their lower margins seen over the past month.

    But traditionally these higher margins prove to be only temporary, as fuel retailers begin to drop their prices to gain a competitive edge and gain volumes. As always, retail fuel software is critical to win this cat and mouse game, balancing volumes and margins while remaining competitive and maximizing profits.

    Comments are closed.