- 19 Jul
Retail fuel margins plunge
According to the latest OPIS report, the average retail fuel margins across the USA took a nosedive this week, dropping another $0.07 per gallon to the lowest levels since February of this year.
Current average US retail fuel margins now stand at $0.100 per gallon, which is $0.20 cents lower than just two weeks ago. Retail fuel margins haven’t been this low since February 22. Year to date averages are now at $0.177 per gallon while the average so far in Q2 stands at $0.136 per gallon. The six week average is $0.200 per gallon.
This is the margin drop we anticipated – when wholesale prices increase quickly, retail prices simply cannot keep up due to consumer behavior, and fuel margins decrease. Retailers will have to make the most of their fuel software to carefully balance their volumes and margins to optimize profits as wholesale prices will inevitably stabilize and then dip lower, providing the opportunity for fuel retailers to make up for lost margins in the coming months.