by John Keller | May 26, 2010 | Fuel Pricing Software, Fuel Pricing Technology, Industry News, PriceAdvantage
In the 5/26/2010 edition of the CSP Daily News, the NACStech Roundup report includes a summary of what Skyline Products is doing with the PriceAdvantage fuel pricing software. It describes how c-stores who upgrade hardware for PCI compliance get the additional benefit of fuel price management to the sign and POS.
“Skyline Products, Colorado Springs, Colo: Increasing, electronic capability at the c-store is allowing Skyline the ability to integrate and execute fuel pricing strategies, according to company officials. Aaron McHugh, division director, said PCI deadlines have forced many to upgrade registers and wide-area networks, which allows for the functionality necessary to better control and execute pricing changes.”
For years Skyline has touted the ability to hang fuel price signs off the VeriFone POS system, and allow the POS to change fuel prices at the sign. Now in 2010 Skyline’s PriceAdvantage fuel pricing software application provides the additional benefit of allowing the Fuel Manager to change fuel prices from headquarters, down to the VeriFone Sapphire POS, and out to the sign. Once the price is changed at the sign, confirmation is provided back to the PriceAdvantage fuel price software at headquarters, with a time/date stamp alerting the Fuel Manager when exactly the prices were changed at the sign and across the system. This closed loop integration has already improved speed to the street at customers such as Fikes (CEFCO convenience stores) based in Temple, TX.
by John Keller | May 26, 2010 | Fuel Price Optimization, Fuel Pricing Strategy, Industry News
In the 5/26/2010 edition of “This Week in Petroleum” released by the US Energy Information Administration, the U.S. average price for regular gasoline this week dropped almost 8 cents to $2.79 per gallon. The national average price for diesel fuel fell 7 cents to $3.02 per gallon.
This drop in regular gasoline is the largest weekly decrease since July 13, 2009. The diesel weekly decrease is the largest since December 15, 2008.
Prices for both regular gasoline and diesel fell in all areas of the country; the largest drop occurred in the Midwest and the smallest drop was in the Rocky Mountains. On the East Coast the weekly drop was $.07 for both regular gas and diesel, and in California regular gas dropped $.07 while diesel dropped $.08.
The national average price for regular gasoline is $0.35 higher than last year at this time while diesel is $0.75 higher than last year.
by John Keller | May 20, 2010 | Fuel Price Management, Fuel Price Optimization, Fuel Pricing Strategy, Industry News
The Associated Press continues to set consumer expectations that they can expect to pay less at the pump this summer then the summer of 2009.
Highlights of the article:
“Prices for heating oil, gasoline and Brent crude all dropped by at least 3 percent. “People are saying it’s time to get out,” said Michael Lynch, president of Strategic Energy & Economic Research. Earlier this year, Lynch stood out from many of his peers by predicting that oil prices would fall. “The market has gotten way ahead of itself,” Lynch said. “People kept saying that soon demand will go up and inventories will go down. But that’s not happening.”
“Traders started getting nervous as the debt crisis unfolded in Europe. U.S. government data showing that Americans continue to have a relatively weak appetite for fuel have sunk energy prices even further.”
“If the world doesn’t start sopping up excess supplies, oil prices may fall into the $40-per-barrel range this year, Lynch said.”
“At the pump, retail gasoline prices dropped 1.2 cents overnight to a new national average of $2.84 a gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of regular unleaded is 1.9 cents cheaper than it was a month ago, but it’s 50.6 cents more expensive than a year ago. Experts say gas prices have likely peaked already this year, and it should cost less to fill up this summer than in the summer of 2009. That’s good news for the travel industry as Americans get ready to hit the highways over the Memorial Day weekend, the unofficial start of the summer driving season.
The full AP article can be read here.
by John Keller | May 14, 2010 | Fuel Price Optimization, Fuel Pricing Strategy, Industry News, Retail Fuel Margins
In today’s Short-term Energy Outlook published by the U.S. Energy Information Administration, the independent statistics and analysis organization predicted the Unleaded fuel price annual average will hit $2.86 per gallon for 2010. That’s slightly more than 22% over the 2009 average of $2.35. The report predicts the annual average will rise again in 2011 to $2.98 per gallon.
The report does not blame the Louisiana oil spill for this rise in fuel prices, though it does say there may be a longer term impact on energy supplies, prices, and infrastructure in the region.
As Fuel Managers navigate the gradual rise in fuel prices over the next few years, it’s critical to leverage a fuel pricing software application to make the best strategic decisions from a volume and profit standpoint, day by day.
by John Keller | May 3, 2010 | Fuel Price Optimization, Industry News, Retail Fuel Margins
On April 14, 2010, the National Association of Convenience Stores presented a summary of 2009 performance statistics at their annual State of the Industy Summit. Key statistical takeways:
- Motor fuel sales represent 68.4% of all convenience store sales dollars. That’s despite a 28% drop in fuel prices and a corresponding 26.9% drop in fuel revenue during 2009.
- Total gallons of fuel sold rose 1.3% over 2008.
- Motor fuels retail fuel margins were at 13.8 cents per gallon.
- Motor fuels contribution to the industry’s profit dollars was 27.3%, where in-store sales contributed 72.7% to store profits.
Once again these statistics reinforce the importance of two things:
1. Monitoring fuel volume and retail fuel margins require diligence on the part of Fuel Managers, who are responsible for an enormous amount of revenue, at razor thin margins.
2. While fuel sales contributions to c-store profits may only be one-third of overall in-store profits, there’s no question that effective fuel strategies drive business to that critical profitabilty gained from in-store sales.
by John Keller | Apr 15, 2010 | Fuel Price Optimization, Industry News, Retail Fuel Margins
In a statement that sets consumer expectations for fuel to top out at $3/gallon this year, the Troy Messenger reported today that an expert with AAA doesn’t expect fuel prices to go much above $3/gallon if even that.
“This is just the time of year where we see prices increase because our demand naturally increases,” said Clay Ingram, public relations and marketing manager for Alabama AAA.
Ingram said the trend occurs every year around spring after drivers have recovered financially from the holidays and have begun to get out and enjoy the weather. “It’s not unexpected by any means,” he said.
Ingram said economic factors may be currently influencing fuel prices, as well. “There seems to be a little optimism on the Wall Street side of things that the economy might be turning around,” he said. That confidence drives up the price of commodities as investors rush to buy crude oil.
Still, Ingram said that at $83 per barrel, the price of oil is where it should be, and while demand is rising as expected, it is still relatively low. “Our demand right now comparatively, is really mild,” he said. For that reason, Ingram explained consumers shouldn’t worry about any dramatic increases in fuel prices like what was seen two years ago.
“That will be why we won’t see our fuel prices go up a dollar per gallon in a month,” he said. “I don’t think we’ll see anything that extreme this year.”
Ingram said that high inventories and favorable refining capacities are also factors that will likely prevent sudden fuel price increases since they would allow for the accommodation of a sudden spike in demand.
In fact, Ingram said fuel prices could be near a high-mark for the year. “I’m not even sure we’ll go over $3 a gallon this year. If we do, it won’t be by much,” he said.