by John Keller | Mar 24, 2011 | Fuel Price Management, Retail Fuel Margins
The US Energy Information Administration just released their latest “This Week In Petroleum” report with updates regarding retail fuel price management. Here are the highlights.
The U.S. average retail price of regular gasoline decreased half of a cent versus last week, the first decline since January 31, 2011. At $3.56 per gallon, gasoline is $0.74 per gallon higher than last year at this time. The biggest decrease was on the Gulf Coast, where the gasoline price fell almost two cents. The gasoline average on the East Coast lost a penny on the week and the Midwest price was down just under a cent. Moving in the other direction, the West Coast average moved up about two cents. In the Rocky Mountains, the price was almost three cents higher than last week. Despite this increase, the gasoline price in the Rocky Mountains remained the lowest in the country at $3.39 per gallon. The most expensive gasoline among the major regions is on the West Coast, where the average retail price is $3.86 per gallon.
Diesel prices fell for the first time in sixteen weeks, albeit a small decrease, with the national average down just a tenth of a cent from last week. At $3.91 per gallon, the diesel price is $0.96 per gallon higher than last year at this time. Diesel prices were mixed across the country, with prices falling less than a penny on the East Coast, Gulf Coast, and in the Midwest. Prices in the Rocky Mountains were up almost four cents. The average on the West Coast was also up on the week, adding over a penny to last week’s price.
by John Keller | Mar 14, 2011 | Fuel Price Management, Fuel Pricing Strategy, Retail Fuel Margins
In today’s US Energy Information Adminstration weekly fuel price report, the USEIA revealed another $.04 increase. The US national average retail fuel price of unleaded gasoline now sits at $3.56/gallon, a gallon of midgrade rose to $3.69, and a gallon of premium rose to $3.80. Fuel prices have now risen $.42 in the last month, and are now at their highest level since September 2008.
The regional area hit hardest was the West Coast, where the average price for unleaded rose $.08 to $3.84. Next was the Rocky Mountain region where unleaded rose $.06 to an average price of $3.35, though fuel prices are still the lowest there than in any other region. The lowest increase of any region was $.03 in the Gulf Coast, where a gallon of unleaded is $3.43.
As for individual states, Ohio had the largest fuel price increase of the week, where prices rose $.09/gallon for unleaded, with an average price of $3.54/gallon.
In Los Angeles and San Francisco, a gallon of Unleaded is priced at $3.97 and $3.96 per gallon. Mid-grade in these cities is now priced above $4.00 for the first time in recent history, at $4.07/gallon.
by John Keller | Mar 10, 2011 | Fuel Price Management, Fuel Pricing Technology, Industry News
The 2011 Pricelock Fuel Pricing Survey report revealed 75% of the US Business Fleets surveyed said they are willing to drive out of their way to save 25 cents per gallon of gas, and 25 percent of those surveyed said they would drive five miles or more for such savings.Respondents included 451 executives, fleet managers and other industry professionals associated with small, medium and large fleets representing a broad range of industries.
The report also showed 65 percent of the U.S. business fleets surveyed are forced to absorb higher fuel costs directly and suffer the bottom-line impact, while only 16 percent are able to pass on rising fuel costs by increasing prices to their consumers.
by John Keller | Mar 7, 2011 | Fuel Price Management, Fuel Pricing Strategy, Industry News
In today’s US Energy Information Adminstration weekly fuel price report, the USEIA revealed another $.14 increase. The US national average retail fuel price of unleaded gasoline now sits at $3.52/gallon, a gallon of midgrade rose to $3.63, and a gallon of premium rose to $3.75.
Following last week’s price increase, fuel prices have now risen $.34 in two weeks.
The regional areas of New England and the Gulf Coast both saw the average gallon of unleaded fuel rise $.16/gallon. The lowest increase of any region was $.11 in the Rocky Mountains, which continues to have the lowest fuel prices in the nation, where a gallon of unleaded is $3.29.
As for individual states, Texas had the largest fuel price increase of the week, where prices rose $.17/gallon for unleaded, with an average price of $3.40/gallon.
In Los Angeles and San Francisco, a gallon of Unleaded is priced at $3.89 and $3.91 per gallon. Premium is priced above $4.00 in both cities, at $4.09 and $4.11/gallon.
by John Keller | Mar 2, 2011 | Fuel Price Management, Industry News
In the weekly “Today in Energy” report released March 1, 2011 by the US Energy Information Administration, there’s a good equation explaining how much a price increase for a barrel of oil equates to a retail fuel price increase.
“Many factors affect retail gasoline prices, but changing prices for domestic and global crude oils are particularly important. Typically, a $10 per barrel change in the spot price of crude oil translates into about a 24 cent per gallon change in the retail price of gasoline within about two months. About half of that price change usually occurs within the first two weeks of the crude oil price change. From the beginning of 2011 through February 18 – just before the Libyan crisis began – the spot price of Brent crude oil increased about $9 per barrel from $93 per barrel to $102 per barrel. Since then, the price of Brent crude oil has increased by a further $10 per barrel.”
That’s relatively consistant with what happened in the retail fuel market over the past 2 weeks, where the latter half of February 2011 saw a $10 increase in a barrel of oil equate to a $.25 retail fuel price increase.
by John Keller | Feb 21, 2011 | Fuel Price Management, Fuel Pricing Strategy, Industry News
OPIS (Oil Price Information Service) sent an email alert today warning of a $.05 wholesale fuel cost increase expected for February 22, 2011. The complete message is pasted here.
“The peace and calm for marketers who are today observing Presidents’ Day has been interrupted by a paroxysm in global prices for crude and refined products, which almost certainly will add 5cts/gal or more to wholesale prices tomorrow.”
“The New York open outcry markets are closed, but some hefty volumes have changed hands in electronic trading and sent overseas crude prices as high as they’ve been since September 2008, and pushed gasoline and diesel prices up 5- 7cts/gal in the process.”
“Brent crude, which has been the driving force behind NYMEX RBOB and heating oil futures price gains in 2011, traded for over $105/bbl this morning, spurred by violence that appeared to escalate into chaos in Libya. Libya produces some 1.7 million b/d of crude. There are also concerns that violence in the Persian Gulf may be ratcheted higher as unrest in the region shows no completion date.”
“April Brent crude was trading at $104.73/bbl, up $2.21/bbl at presstime. Even higher numbers were seen in electronic WTI action, where the expiring March contract moved up $4/bbl to $90.19/bbl and the April contract (which will soon represent the prompt month) rallied some $4.38/bbl to $94.08/bbl. This latter rally has the interest of technical analysts, who believe it may signal a much larger pop.”
“March RBOB futures were up 5.87cts/gal at $2.61/gal and April (the low RVP month) moved up 5.87cts /al to $2.749/gal. March heating oil was up 6.46cts/gal at $2.7775/gal and April barrels were 6.52cts/gal higher at $2.7912/gal.”
“Most U.S. oil companies are closed today (2/21/11), so OPIS has not yet seen a host of intraday moves. Terminals are quite busy, however, as jobbers race to get ahead of price increases that might add $400-$500 per load when spot markets reopen for business tomorrow.”
From a fuel price management perspective, this is one more indicator that the time is now to invest in fuel pricing solutions that allow for the monitoring of cost changes, competiitor responses, fuel volume actuals vs. targets, strategy review, price optimization, and price change execution, in order to make sure fuel budgets for the year stay on track.
