by John Keller | Aug 2, 2013 | Fuel Price Management Solutions, Fuel Price Optimization, Retail Fuel Margins
OPIS reported this week that average retail fuel margins across the US added to the gains of last week and increased by $0.038 to $0.214 per gallon. That makes for an $0.114 increase from just two weeks ago when retail fuel margins were at an abysmal $0.100 per gallon.
Though the increase in margins this week did not bring retail fuel averages to the levels of July 5 when margins were at the highest level of the year at $0.302 per gallon, the increase did raise year to date margins to $0.178 and the Q2 average to $0.193. The six week margin average stands at a strong $0.206 per gallon.
Considering the prediction for increased retail fuel prices by many industry analysts, margins this week didn’t suffer by any such retail fuel price rise. Hopefully retail fuel prices can remain steady throughout the summer and make for a profitable season.
by John Keller | Jul 29, 2013 | Industry News, Retail Fuel Margins
According to the latest OPIS report, retail fuel margins rebounded this week, more than making up for the margin decrease of last week.
Average retail fuel margins now stand at $0.176 per gallon across the US, up $$0.076 per gallon from last week. The average retail fuel margins year to date stand unchanged at $0.177 per gallon. The retail fuels average for July dipped slightly to $0.187 per gallon. The US six week average improved $0.004 per gallon from last week to $0.204 per gallon. Average retail fuel margins since Memorial Day are $0.201 per gallon.
As we track these industry benchmark averages in this fuel price management blog, the question is, how easy is it to use your fuel software to report the retail fuel margins of your organization for each of these time frames? In Skyline PriceAdvantage, the Margin Analysis view presents a quick way to view margins across different markets, for specified commodity products, in preset periods of time, as well as ad hoc date ranges. The results appear in real time, and then can be exported for use in management reports. It is this insight that allows you to optimize retail fuel margins and volumes, market by market, and store by store.
by John Keller | Jul 22, 2013 | Fuel Price Optimization, Fuel Pricing Strategy, Retail Fuel Margins
We’re seeing news stories all over the country, both nationally and on a local level, bracing US consumers for rising retail fuel prices in the coming weeks. The reasons given include unrest in Egypt, increased demand due to the summer season, and production disruptions in the US.
The source of the stories is consistently the American Automobile Association (AAA), which receives its pricing information from OPIS. The PriceAdvantage integration with OPIS allows PriceAdvantage customers to provide their latest pricing information to OPIS, and thus display the current gas prices on websites that receive pricing information from OPIS, including MSN Autos, Garmin, AAA, and MapQuest.
From a fuel management perspective, these news stories mean two things.
- If OPIS is correct, and wholesale prices continue to rise, fuel retailers are looking at more weeks with continued slim retail fuel margins. It will be a time period of holding on, waiting for the crest and fall of wholesale prices when retail prices can catch up, and retail margins can be restored.
- Consumers may not be happy with increased retail fuel prices, but at least they won’t be caught off guard. That means there will be opportunities for fuel retailers to adjust retail fuel margins and make up lost ground when wholesale fuel prices drop again.
In order to navigate these times of fluctuating retail fuel margins, analysts in the fuel management area need to maximize their investment and use of their fuel software to optimize fuel profits. Only the most sophisticated fuel software can provide the optimized balance between fuel margins and fuel volumes in times like these.
by John Keller | Jul 19, 2013 | Fuel Price Optimization, Industry News, Retail Fuel Margins
According to the latest OPIS report, the average retail fuel margins across the USA took a nosedive this week, dropping another $0.07 per gallon to the lowest levels since February of this year.
Current average US retail fuel margins now stand at $0.100 per gallon, which is $0.20 cents lower than just two weeks ago. Retail fuel margins haven’t been this low since February 22. Year to date averages are now at $0.177 per gallon while the average so far in Q2 stands at $0.136 per gallon. The six week average is $0.200 per gallon.
This is the margin drop we anticipated – when wholesale prices increase quickly, retail prices simply cannot keep up due to consumer behavior, and fuel margins decrease. Retailers will have to make the most of their fuel software to carefully balance their volumes and margins to optimize profits as wholesale prices will inevitably stabilize and then dip lower, providing the opportunity for fuel retailers to make up for lost margins in the coming months.
by John Keller | Jul 13, 2013 | Fuel Price Optimization, Industry News, Retail Fuel Margins
OPIS reported this week that average retail fuel margins across the USA have fallen dramatically. The latest numbers reflect an average retail fuel margin of $0.171 per gallon which is a 40% drop since last week. The $0.131 per gallon decrease in average retail fuel margins is the largest drop in 52 weeks.
The year to date average retail fuel margin remains steady from last week at $0.180 per gallon and the six week average retail fuel margin dipped slightly to $0.219.
Current predictions are that retail fuel prices are going to increase in the coming weeks. That will put additional pressure on retail fuel margins, so I don’t expect the OPIS report next week to bring any good news for fuel retailers.
by John Keller | Jul 5, 2013 | Fuel Pricing Strategy, Industry News, Retail Fuel Margins
According to OPIS, retail fuel margins across the USA are now at the highest average levels of the year.
For the third consecutive week, retail fuel margins increased, this time up $0.028 per gallon to an average of $0.302 per gallon. The increase this week bumped the year to date average retail fuel margin to $0.180 per gallon.
For the past six weeks, the average retail fuel margin stands at $0.227 per gallon.
Oil prices have been on the rise however, so it stands to reason that wholesale prices may soon inch up, putting pressure on retail fuel margins. From a fuel management perspective, it makes sense to use profits from these margins to invest in fuel software in order to keep a close watch on the changing market conditions, and optimize fuels prices to balance margins and volumes.
