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- 21 Feb
January retail fuel margins year over year vary by region across the US
According to an excellent article written by Samantha Oller, Senior Editor of CSPNet.com, January retail fuel margins in 2014 varied widely across the different US geographic regions.
The highest margins in January 2014 could be found in the Midwest at 16.4 cents per gallon. In Texas, the retail fuel margins were lowest at 14.2 cents per gallon. In the Southeast, retail fuel margins were right in the middle at 15.2 cents per gallon.
The article cites Raymond James & Associates as well as OPIS as their source. The Raymond James & Associates research is based on their survey of a select group of c-store chains and fuel distributors: Casey’s General Stores, CST Brands Inc., Murphy USA Inc., The Pantry Inc., Susser Holdings Corp., TravelCenters of America, Susser Petroleum and LeHigh Gas Partners.
According to the 2014 NACS Fuels Report, on average, it costs a retailer about 12 to 16 cents to sell a gallon of gasoline. That means January has allowed retailers to start the year off in positive retail margin territory. Unfortunately, it is typically the month of February when we start seeing downward pressures on retail fuel margins as we head into the spring. Hopefully the c-store retail industry can cling to these margins in the coming months.
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