by John Keller | Jul 15, 2010 | Fuel Price Optimization, Industry News, Retail Fuel Margins
According to the US Energy Information Administration, the U.S. average price for regular gasoline dropped for the second week in a row. The U.S. average price for regular gasoline slipped a penny to $2.72 per gallon. The national average was $0.19 higher than last year. With the exception of the Midwest, average prices declined in all regions of the country. On the East Coast and Gulf Coast, the averages each dropped more than a penny and a half, to $2.66 per gallon and $2.56 per gallon, respectively. Despite an increase of less than a half cent, the average in the Midwest was essentially unchanged at $2.68 per gallon. The average in the Rocky Mountains slipped over a cent to $2.74 per gallon. The West Coast average fell about a cent to settle at $3.04 per gallon and the California price dipped less than a half cent to $3.11 per gallon.
by John Keller | Jul 8, 2010 | Fuel Price Management, Fuel Price Optimization, Retail Fuel Margins
According to the US Energy Information Administration report issued July 8, the U.S. average fuel prices dropped for the first time in three weeks. The price for regular gasoline fell three cents to $2.73 per gallon. The national average was $0.11 higher than last year.
Regionally, average fuel pricing slipped in all sections of the country. The averages on the East Coast and on the Gulf Coast dropped about three cents each to $2.67 per gallon and $2.58 per gallon, respectively. The largest drop took place in the Midwest where the average slumped more than a nickel to $2.68 per gallon. The average in the Rocky Mountains declined a penny to $2.76 per gallon. The West Coast price slipped half a cent to settle at $3.05 per gallon and the average in California fell a penny to $3.12 per gallon.
by John Keller | Jul 1, 2010 | Fuel Price Management, Fuel Price Optimization, Retail Fuel Margins
Associated Press reports BP will begin reimbursing their dealers with fuel rebates of $.01-.02 per gallon purchased at terminals to help offset the decline in fuel sales reported by many BP dealers after the gulf oil spill began. BP says the rebate money may be used however the dealers wish. While some may use the money to help cover lost sales since April, others may pass on the rebate directly to a fuel price reduction at the pump.
Given that studies have shown people will drive miles out of their way to save a few cents per gallon on fuel, I would expect most dealers will use this money to lower their fuel prices.
by John Keller | Jun 25, 2010 | Fuel Price Optimization, Fuel Pricing Strategy, Industry News
A survey by travel organization AAA projects that the number of Americans traveling over the holiday weekend will increase 17.1 percent from 2009, according to a report by the Chicago Tribune. The survey projects 34.9 million travelers will take a trip at least 50 miles away from home sometime between July 1 and July 5.
Roughly 90 percent of travelers, or 31.4 million people, are expected to travel by car, up almost 18 percent from the number in 2009.
Though traveling may be up, the AAA survey also found that median spending by travelers is estimated to be $644 this holiday weekend, nearly $50 less than last year.
by John Keller | Jun 14, 2010 | Fuel Price Management, Fuel Price Management Solutions, Fuel Price Optimization, Fuel Pricing Software, Fuel Pricing Technology
This weekend I decided to fill up my car at the local c-store down the street. The advertised fuel price was $2.59, a few cents higher than the store a mile away, but since I was in a hurry, I figured it was worth the time saved. Plus I knew I’d get the $.03 per gallon grocery store reward discount. I entered in my phone number and zip code at the pump, and noticed the price per gallon dropped to $2.52. I eagerly filled my tank, recognizing what a good deal I was getting, and wondering if maybe I was taking advantage of a system breakdown. When I was finished, I drove past the other pumps to see what price they were set to. Sure enough, all the pumps were $.04 less than the advertised price on the sign, and with my $.03 per gallon rewards discount, that explained the $2.52.
It occurred to me how much more business the store could be generating if they brought their price signs in line with their pumps, and let everyone know they had the best fuel prices in town. Or if they chose to, they could raise their pump prices to accurately reflect the advertised price on the sign.
Thankfully, with electronic sign and fuel pricing software solutions from Skyline Products, these scenarios are easily avoided. PriceAdvantage fuel pricing software makes it easy to price your electronic price signs in line with your pumps and POS systems. Whether you’re using VeriFone, Radiant, or Gilbarco POS systems, it’s easy to make sure they stay in synch with your fuel price signs and pumps. And that’s the way to make the most of your fuel pricing strategy.
by John Keller | Jun 9, 2010 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Retail Fuel Margins
In the June 8, 2010 edition of the US Energy Information Administration’s monthly “Short-Term Energy Outlook”, the EIA revised their forecast for summer unleaded retail fuel price national averages down $.15 per gallon. The EIA now projects the national average fuel price for unleaded will be $2.79 per gallon for the summer 2010 driving season that lasts through September 30. The summer gasoline price forecast is down primarily as a result of the lower crude oil price forecast. The average price in the summer of 2009 was $2.44 per gallon.
This downward projection is despite the estimates of reductions in production resulting from a 6-month deepwater drilling moratorium announced by Secretary Salazar in May. The reductions in crude oil production resulting from the moratorium are estimated to average about 26,000 barrels per day (bbl/d) in the fourth quarter of 2010 and roughly 70,000 bbl/d in 2011.
EIA projects crude oil prices will average about $79 per barrel over the second half of this year and rise to $84 by the end of next year.
EIA projects that OPEC, which did not change its production targets at its March meeting, will keep its crude oil production largely unchanged for the remainder of 2010. The countries that have the bulk of OPEC ‘s spare capacity – Saudi Arabia, Kuwait, and the United Arab Emirates – have maintained their quota discipline at current levels for an extended period and are expected to continue doing so barring significant changes in the world oil market outlook.
