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- 10 Sep
Total US fuels volumes continue to shrink
Both the US Energy Information Administration and the University of Michigan continue to release information about the downward trend of US fuels volumes. The conclusions have a direct impact on the c-store retail fuels marketer because both the US EIA report and the University of Michigan study reveal a continued decrease in the overall retail fuels market size.
The US EIA reports that in 2012, US drivers consumed 50,000 barrels a day less gasoline than in 2011. And in the first half of 2013, US drivers have cut back again, consuming 50,000 barrels a day less gasoline than in 2012. While the US economy continues to improve in 2013, the improved fuel efficiency of vehicles on the US roads more than offsets any expected increase in fuels volume consumption.
According to the University of Michigan study, the average fuel efficiency of new vehicles sold in the US is now at an all-time high, reaching 24.9 miles per gallon in August. The average fuel economy of 2013 year model vehicles that were sold from October 2012 through August was 24.7 mpg. That makes for an increase of 1.2 miles per gallon above the 2012 year model vehicles. The average fuel economy of new vehicles has increased 19.7% since 2008.
How does this pertain to fuel management? While markets will vary based on population shifts, it is critical that fuel marketers continue to compare their current fuel volumes to six week trends, and year to date trends to last year. Fuel software must provide rich analysis that provides answers quickly so fuel pricing strategies can be continually adjusted. Our customers agree, PriceAdvantage analytics are the best in the business.
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