by John Keller | Sep 21, 2013 | Industry News
According to the latest OPIS report, the US national retail fuel margins increased for the third consecutive week, reaching a healthy average of $0.240 per gallon. The increase this week was enough to uptick the average retail fuel margins for the year to $0.183 per gallon, the highest year to date retail fuel margins of 2013.
The average retail fuel margins across the US for this quarter now stand at $0.201 per gallon and the six week average stands at $0.206 per gallon.
We are now into the second week of the annual transition from summer to winter blends, and with the likelihood of Syrian bombings decreasing, it is reasonable to be optimistic that retail fuel margins will continue upward.
by John Keller | Sep 18, 2013 | Industry News, Retail Fuel Margins
The latest OPIS report shows average retail fuels margins across the US have recovered the losses of recent weeks and now stand at $0.211 per gallon. That’s a $0.04 gain this week. Retail fuels margins are higher than they have been in four weeks and are nearly back to the levels of August 16.
Year to date retail fuel margin averages are up slightly to $0.182 per gallon and the average Q2 retail fuel margins are at $0.198 per gallon. The six week average is essentially unchanged at $0.202 per gallon.
Historically this is the time of year when costs start to drop as we transition to the winter blends, offering opportunities for increased fuel margins across the country.
by John Keller | Sep 16, 2013 | Fuel Price Management, Fuel Pricing Software
Fifteen months ago I wrote an article about natural disasters and fuel price management because the city of our home office was experiencing terrible forest fires. Since then another major section of the Colorado Springs metropolitan area suffered a forest fire, even larger than the fire of 2012.
I write this blog article to revisit the topic because the state of Colorado is now going through some of the worst flooding in its history, with many properties devastated, and lives lost.
From a fuels price management perspective, these Colorado floods are a significant disruption to the business of fuels management. Roads are difficult to travel, making it a problem to deliver fuel loads, and difficult for customers to travel. Demand for fuels in affected areas will unquestionably be low and possibly next to nothing. Some stores may even have to close temporarily.
In the future when we refer back to these days, it’s critical that your fuel software has the ability to annotate the special circumstances surrounding these business disruptions. PriceAdvantage provides an easy interface to add notes to the volume graphs for each day when the disruption can be recorded for future reference. Then in comparison analysis views, it’s easy to recall the reason why there are such glaring anomalies in fuels volumes.
by John Keller | Sep 13, 2013 | Customer News
When Valero announced their intentions to spin off their retail businesses, the primary reason was to increase shareholder value.
On September 12, the now spun off retail business CST Brands announced their intention to offer cash dividends to stock holders. Initially the dividends are set at $.0625 per share.
After opening at a stock price of $27.50 per share on May 2, CST Brands stock is now trading in the $30 per share range.
CST Brands has been using PriceAdvantage as their retail fuel software at all their US stores since 2012.
by John Keller | Sep 10, 2013 | Industry News, Retail Fuel Margins
The latest OPIS numbers show a $0.002 increase in US average retail fuel margins over last week. The average retail fuel margins across the US are now at $0.171 per gallon. The year to date national average remains at $0.181 per gallon. The Q2 average dipped to $0.196 per gallon. The six week average remained the same at $0.203 per gallon.
The current retail fuel margins are $0.028 higher than last year at this time.
Recently the crude prices have stopped their rising, so hopes are up that margins can remain strong as we finish Q2.
by John Keller | Sep 10, 2013 | Fuel Price Management, Fuel Pricing Strategy, Industry News
Both the US Energy Information Administration and the University of Michigan continue to release information about the downward trend of US fuels volumes. The conclusions have a direct impact on the c-store retail fuels marketer because both the US EIA report and the University of Michigan study reveal a continued decrease in the overall retail fuels market size.
The US EIA reports that in 2012, US drivers consumed 50,000 barrels a day less gasoline than in 2011. And in the first half of 2013, US drivers have cut back again, consuming 50,000 barrels a day less gasoline than in 2012. While the US economy continues to improve in 2013, the improved fuel efficiency of vehicles on the US roads more than offsets any expected increase in fuels volume consumption.
According to the University of Michigan study, the average fuel efficiency of new vehicles sold in the US is now at an all-time high, reaching 24.9 miles per gallon in August. The average fuel economy of 2013 year model vehicles that were sold from October 2012 through August was 24.7 mpg. That makes for an increase of 1.2 miles per gallon above the 2012 year model vehicles. The average fuel economy of new vehicles has increased 19.7% since 2008.
How does this pertain to fuel management? While markets will vary based on population shifts, it is critical that fuel marketers continue to compare their current fuel volumes to six week trends, and year to date trends to last year. Fuel software must provide rich analysis that provides answers quickly so fuel pricing strategies can be continually adjusted. Our customers agree, PriceAdvantage analytics are the best in the business.
