by John Keller | Feb 7, 2012 | Retail Fuel Margins
Today in their Short-Term Energy Outlook report, the US Energy Information Administration announced they expect unleaded fuel prices for 2012 to average $3.55 per gallon. That would be a $.03 increase over the unleaded fuel price average in 2011. The USEIA expects that from April through September, fuel prices will average approximately $.07 per gallon higher than the overall average for the year. The report also says there is a 25% chance that average unleaded fuel prices will be above $4 per gallon in June.
From a fuel price management perspective, if these predictions prove to be true, 2012 fuel prices will not be enough different than 2011 to have a dramatic change on fuel volumes compared to 2011.
by John Keller | Jan 26, 2012 | Retail Fuel Margins
Today Murphy Oil announced in their quarterly financial results that for the quarter ending December 31, 2011, retail fuel margins were $.130 per gallon. That’s up from $.074 for the previous year’s results for the same period.
For the year ending December 31, 2011, retail fuel margins were at $.156 per gallon, compared to $.114 for the previous year.
by John Keller | Jan 26, 2012 | Fuel Pricing Strategy, Retail Fuel Margins
Texas A&M professor of economics and fuel analyst of 30 years John Moroney says fuel prices may or may not hit $4/gallon this summer, and are unlikely to hit $5. “Could gas go to $4? It is possible, but not a certainty. Could it go to $5? I just don’t see it happening.”
Professor Moroney said that in order for fuel prices to reach $5/gallon, oil prices would need to be in the range of $140-$150 a barrel. And with oil production on the rise, including findings of huge oil reserves in recent years, and the increase of shale production, Professor Moroney doesn’t see that happening.
You may find the original interview at theeagle.com here.
by John Keller | Dec 28, 2011 | Fuel Price Management, Retail Fuel Margins
Today MasterCard reported that US fuel demand is down 1.6% for the year through December 23, 2011. Fuel volumes sold in the US fell for the 17th consecutive week year over year. Fuel demand over the previous four weeks was down 3.6% compared to 2010, the 40th consecutive drop in that measure.
From a fuel price management perspective, this means c-stores are competing for pieces of a shrinking pie. This hyper-competitive fuel market demands the best fuel pricing software systems to optimize fuel profits.
by John Keller | Dec 19, 2011 | Fuel Price Management, Industry News, Retail Fuel Margins
According to the US Energy Information Administration “Today’s Gasoline Prices” report, unleaded fuel prices took a big dip for the week.
Average fuel prices across the US for regular unleaded dropped six cents for the week, from $3.286 to $3.229. The previous week saw a one cent drop.
Regionally the biggest price drop for unleaded fuel was in the Rocky Mountains where the average price fell from $3.238 to $3.142. The Midwest region fared nearly as well with an eight cent drop this week from $3.227 to $3.147. The West Coast region had a five cent drop from $3.548 to $3.490, the highest average cost in the country.
by John Keller | Dec 16, 2011 | Fuel Price Management, Retail Fuel Margins
In the latest US Energy Information Administration’s Short-Term Energy Outlook report, the EIA projects lower fuels price averages for next year.
The EIA forecasts that the annual average regular-grade gasoline fuel retail price, which was $2.78 per gallon in 2010, will be $3.53 per gallon in 2011 and $3.45 per gallon in 2012. The EIA expects that on-highway diesel fuel retail prices, which averaged $2.99 per gallon in 2010, will average $3.85 per gallon in both 2011 and 2012.
From a fuels price management perspective, it looks like business as usual for 2012 with regard to fuel price trends.
