- 23 May
Retail fuel margins drop this week
According to the OPIS report today, the average US retail fuel margin dropped $0.06 per gallon this week to $0.188 per gallon. The year to date average is $0.162 and the Q2 average is $0.169 per gallon. The six week average is $0.178.
Current levels remain above retail fuel margins of last year for the third straight week. Last year at this time the average retail fuel margin was $0.124 per gallon. That’s significant because this holiday weekend traditionally yields a strong bump in retail fuel volumes, and this year the number of Americans travelling 50 miles or more is expected to be 1.5% higher than in 2013.
That means c-stores have the opportunity to show robust fuel sales and profits this month, as long as they manage their retail fuel business wisely, carefully monitoring the competition, optimizing the balance between margin and volumes, and quickly executing the best pricing strategies to the street.