by John Keller | May 13, 2011 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Industry News, Retail Fuel Margins
There’s a great MSNBC news article out today discussing the role of the US Federal Government in helping fuel prices trend downward. The key takeaway for the Fuel Price Manager is that fuel prices are going to continue their downward trend of recent days. From a Fuel Price Management perspective, that means it’s a critical moment to invest in fuel pricing solutions that allow the continued monitoring of wholesale costs, and the competitor fuel price reaction. As cost drops, now is the time to increase retail fuel profits, while carefully managing the gradual fuel price decreases that the consumer expects.
News agencies are making it common public knowledge that retail fuel prices are quick to rise when wholesale costs increase, and slow to drop when wholesale costs decrease. But these agencies are setting customer expectations for retail fuel prices to drop over the coming months. That means people will be looking for price decreases, and will be quick to jump on them with a fill-up when they see a well-advertised price.
Here are highlights from the article:
- Oil prices have peaked and appear to be coming down.
- After flooding the financial system with cash for more than two years in an effort to stabilize financial markets and economy, the Fed is getting ready to turn off the taps. The anticipation is one reason oil prices are coming back down.
- For all of the complex forces acting on the global oil market, the dollar has a powerful sway for the very simple reason that oil is priced in dollars. The dollar has begun showing signs of strength. Just as a weaker dollar helped send oil prices surging, a stronger dollar is reining them in.
- The forces that drove prices higher seem to have reversed course. Global growth seems to be slowing. The dollar is strengthening. And the inflation threat from the Fed’s easy-money policies may be easing.
- Until the outlook for oil prices becomes clearer, expect more daily price swings that will send even the most seasoned traders looking for cover.
The full article may be found here.
by John Keller | Apr 12, 2011 | Fuel Price Management, Fuel Pricing Strategy, Industry News
In today’s US Energy Information Adminstration weekly fuel price report, the USEIA revealed an $.11 increase for the national average price of Unleaded Regular fuel. The US national average retail fuel price of unleaded gasoline now sits at $3.79/gallon, a gallon of midgrade rose to $3.90, and a gallon of premium rose to $4.02. That’s the first time the national average for premium fuel has been priced above $4 for years. These are the highest fuel price levels since September 2008.
The regional areas hit hardest were the Gulf Coast and the Midwest, where the average price for unleaded rose $.12 to $3.66 and $3.90/gallon respectively. The lowest increase of any region was $.07 in the Rocky Mountains, where a gallon of unleaded fuel averages $3.57.
As for individual states, Minnesota had the largest fuel price increase of the week, where prices rose $.23/gallon for unleaded, with an average price of $3.82/gallon.
The average price of Unleaded in California remained the highest in the nation, reaching $4.20/gallon. In Los Angeles and San Francisco, a gallon of Unleaded is priced the highest in any major city, at $4.23 and $4.22 per gallon.
by John Keller | Apr 4, 2011 | Fuel Price Management, Industry News
In today’s US Energy Information Adminstration weekly fuel price report, the USEIA revealed a $.09 increase for the national average price of Unleaded Regular fuel. The US national average retail fuel price of unleaded gasoline now sits at $3.68/gallon, a gallon of midgrade rose to $3.80, and a gallon of premium rose to $3.92. Fuel prices have now risen $.50 in the last six weeks, and are at their highest levels since September 2008.
The regional area hit hardest was the Midwest, where the average price for unleaded rose $.13 to $3.68/gallon. The lowest increase of any region was $.04 on the West Coast, where a gallon of unleaded fuel averages $3.95.
As for individual states, Ohio had the largest fuel price increase of the week, where prices rose $.22/gallon for unleaded, with an average price of $3.75/gallon.
The average price of Unleaded in California remained above the $4 barrier, reaching $4.05/gallon. In Los Angeles and San Francisco, a gallon of Unleaded is priced the highest in any major city, at $4.09 and $4.08 per gallon.
by John Keller | Mar 28, 2011 | Industry News, Retail Fuel Margins
In today’s US Energy Information Adminstration weekly fuel price report, the USEIA revealed another $.03 increase for Unleaded Regular fuel. The US national average retail fuel price of unleaded gasoline now sits at $3.59/gallon, a gallon of midgrade rose to $3.71, and a gallon of premium rose to $3.83. Fuel prices have now risen $.46 in the last six weeks, and are now at their highest levels since September 2008.
The regional area hit hardest was the West Coast once again, along with the Rocky Mountain region, where the average price for unleaded rose $.06 to $3.91/gallon on the West Coast and $3.44/gallon in the Rocky Mountains. Despite the $.06 increase, the fuel prices in the Rocky Mountains are still the lowest there of any other region. The lowest increase of any region was $.01 in the Central Atlantic, where a gallon of unleaded is $3.57.
As for individual states, Washington had the largest fuel price increase of the week, where prices rose $.08/gallon for unleaded, with an average price of $3.77/gallon.
The average price of Unleaded in California broke the $4 barrier for the first time in recent history, reaching $4.02/gallon. In Los Angeles and San Francisco, a gallon of Unleaded is priced the highest in any major city, at $4.06 and $4.04 per 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.
