by John Keller | Jul 2, 2010 | Fuel Price Management, Fuel Pricing Strategy, Industry News, Retail Fuel Margins
July 1, 2010 – According to the latest edition of the US Energy Information Administration’s “This week in petroleum” report, the average retail fuel price for regular gasoline rose for the second straight week as of June 28th. Current retail gasoline prices are above their year-ago level, but lower than prices during the same period in 2008, 2007, and 2006.
For the second week in a row, the U.S. average fuel price for regular gasoline increased, moving up more than a penny to settle at $2.76 per gallon, $0.12 higher than last year. With the exception of the Rocky Mountains, average fuel prices increased in all other regions of the country. The average on the East Coast went up a penny to $2.70 per gallon. The increases in the Midwest and on the Gulf Coast amounted to a bit less than two cents, taking the prices to $2.73 per gallon and $2.61 per gallon, respectively. The Rocky Mountain price slipped a half cent but remained essentially unchanged at $2.77 per gallon. The West Coast average climbed the most of any major region, moving up over two cents to $3.06 per gallon. The average in California moved up nearly three cents to $3.13 per gallon.
From the supplier point of view, the US EIA expects gasoline retail fuel margins to remain moderate, with gasoline demand showing slight growth in 2010. This implies that retail prices are likely to average under $3 per gallon this summer barring unexpected events.
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 24, 2010 | Industry News, Retail Fuel Margins
According to the “This Week in Petroleum” report from June 23, 2010, the US Energy Information Administration reported that for the first time in six weeks, the U.S. average price for regular gasoline increased, moving up four cents to settle at $2.74 per gallon, 5 cents higher than last year. Although prices went up in all regions of the country, the range of change was considerable, from less than a half cent in the Rocky Mountains to seven cents in the Midwest. The average on the East Coast increased three cents to $2.69 per gallon, while the Midwest price jumped seven cents to $2.71 per gallon. Despite an increase of two cents, the average on the Gulf Coast remained the lowest of any region at $2.60 per gallon. Increasing less than a half cent, the average in the Rocky Mountains was essentially unchanged at $2.77 per gallon. The West Coast average climbed four cents to $3.03 per gallon, while the price in California moved up nearly a nickel to $3.10 per gallon.
The national average price for diesel fuel rose for the first time since May 10, 2010, climbing three cents to $2.96 per gallon, $0.35 above the price a year ago.
by John Keller | Jun 21, 2010 | Industry News, Retail Fuel Margins
The latest report from the US Energy Information Administration shows a continued drop in national fuel prices.
The U.S. average price for regular gasoline has declined for five consecutive weeks. Prices dropped by over 2 cents to hit $2.70 per gallon, 3 cents higher than a year ago. Over the last five weeks, the price for regular gasoline has decreased by over 20 cents per gallon. The averages fell in all regions of the country with the East Coast price falling by about three cents to $2.66 per gallon. The Midwest and Rocky Mountain averages slipped two cents to $2.64 per gallon and $2.77 per gallon, respectively. The lowest price was found in the Gulf Coast at $2.58 per gallon, after a decline of more than 3 cents. The prices on the West Coast and in California dipped a penny and a half to $2.99 per gallon and $3.05 per gallon, respectively.
The national average price for diesel fuel also fell for the fifth week in a row, dropping two cents to $2.93 per gallon, $0.36 above a year ago. Prices fell in all regions of the country as the East Coast declined two cents to $2.95 per gallon. The Midwest price dipped a cent to $2.89 per gallon. The Gulf Coast and Rocky Mountain averages fell about three cents to $2.87 per gallon and $2.99 per gallon, respectively. The average on the West Coast slid less than half a cent to $3.05 per gallon. In California, the average was unchanged at $3.07 per gallon.
by John Keller | Jun 9, 2010 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Industry News
Today the US Energy Information Administration announced that US national average fuel prices were essentially unchanged this week. In their “This Week In Petroleum” report, the EIA announced that fuel price increases in the Midwest and on the West Coast offset price decreases in the East, Gulf Coast, and Rocky Mountains.
This week US national averages dipped less than half a cent, remaining essentially unchanged at $2.73 per gallon. The price was a dime higher than last year at this time. Price changes were mixed, with the East Coast seeing the largest regional decrease, of nearly four cents, to $2.69 per gallon. The averages on the Gulf Coast and in the Rocky Mountains declined about three cents to $2.61 per gallon and $2.79 per gallon, respectively. Moving up three and a half cents, the average in the Midwest reached $2.66 per gallon. The West Coast price rose three cents to $3.01 per gallon, while the average in California increased over four cents to settle at $3.07 per gallon.
Now we all wait to see the what impact hurricane season will have on fuel prices this summer. August and September are typically the most common for hurricanes in the US. In 2008 fuel prices were impacted dramatically by hurricanes, and according to EIA software simulations, the likelihood of experiencing disruptions similar to the 2008 hurricane season (outages of 65 million barrels) or worse is estimated to be 17 percent during the upcoming season, which is quite a bit higher than the probability expected during a normal season (5 percent).
by John Keller | Jun 3, 2010 | Fuel Price Management, Fuel Price Optimization, Industry News, Retail Fuel Margins
In today’s edition of the US Energy Information Administration’s “This Week In Petroleum” report, the US EIA reported a drop in US average fuel prices for the third consecutive week. The cumulative drop across the country for these three weeks is almost $.18 for regular unleaded, which now averages $2.72 per gallon.
This week regular unleaded fuel dropped $.06 on average, which is still priced $.20 per gallon higher than last year at this time. Prices dropped in all regions of the country, with the East Coast and Midwest dropping the most at $.07 per gallon. On the West Coast, fuel prices dropped $.03 bringing the average to $2.98. The last time averages were below $3.00 on the West Coast was back in March 2010. California averages also dropped $.03 but still remained above $3.00 with an average price of $3.02 per gallon.