- 07 Nov
Retail fuel margins remain higher than last year
The OPIS report today revealed the average retail fuel margin across the US remains higher than this same time last year. The retail fuel margin average stands at $0.275 per gallon, down $0.037 from last week, but still $0.044 per gallon higher than this week in 2013.
Once again the year to date average increased, up $0.002 per gallon to $0.205 . The average for Q4 remains at a robust $0.306 per gallon, the same margin as the six week average.
Earlier this week Saudi Arabia unexpectedly cut their prices for crude sold to the US, but raised their prices for crude sold to other locations including those in Asia. Earlier this week crude was trading below $77 per barrel, but at the time of this writing, it is trading at just under $79 per barrel.
From a fuel price management perspective, indications are that wholesale prices are likely approaching their bottom levels of the year, meaning retail fuel margins will likely continue to decrease slightly as retailers compete for volumes over the remaining weeks of 2014.