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.
by John Keller | Dec 5, 2011 | Industry News, Retail Fuel Margins
In a December 4 CNN article Trilby Lundberg of the Lundberg Survey said retail fuel margins are on a downward trend as a result of ongoing reduced fuel demand throughout the US market. From a fuel price management and c-store public relations perspective, these articles are positive in that they present a realistic picture to the consumer, bringing awareness to the public that higher fuel prices do not mean more profits for fuel retailers.
According to NACS Online, average US retail fuel margins were at $0.215 on December 2, down from $0.27 the previous Friday.
by John Keller | Nov 23, 2011 | Fuel Price Management, Retail Fuel Margins
The latest MasterCard Spending Pulse survey reported retail fuel sales down 4.5% compared to the same period last year for the week ending November 18.
Holiday travel for this year is predicted to be higher than last year, but not enough to turn around the trend. Experts cite the causes as being high unemployment and low wages.
From a fuel price management perspective, this survey indicates the ongoing trend of fuels retailers chasing fewer fuel gallons, making the environment even more competitive and with less room for error. Convenience stores without the most advanced fuel price management solutions will find it increasingly difficult to effectively compete in these market conditions.
by John Keller | Nov 18, 2011 | Industry News, PriceAdvantage, Retail Fuel Margins
ConsumerAffairs.com posted a report that this week fuel prices didn’t track with the price of West Texas oil. That’s consistent with an earlier blog article I wrote saying retail fuel prices are not likely to respond to changes in WTI. It’s interesting to see that the prediction is proving to be true.
by John Keller | Nov 16, 2011 | Fuel Price Management, Fuel Pricing Strategy, Retail Fuel Margins
The Bespoke Investment Group issued a statement saying that despite crude prices topping $100 a barrel today, retail fuels prices are not likely to rise in response. That’s because Bespoke says retail fuels prices have been responding much more closely to changes in Brent crude, than with WTI. And Brent crude has not gone up in price.
“As long as Brent crude continues to underperform WTI crude, rising oil prices will be less of a drag on US consumers than they have typically been in the past,” Bespoke wrote.
From a fuels price management perspective, this is important because fuel analysts may choose to stop tracking WTI prices, and instead focus on the performance of Brent crude, when anticipating future price moves.
by John Keller | Nov 9, 2011 | Retail Fuel Margins
Retail fuel margins for the third quarter were 21.9 cents per gallon, versus 18.5 cents in the third quarter of 2010. For the first three quarters of 2011 retail fuel margins were 19.2 cents per gallon compared to 15.3 cents per gallon for the same period last year. Retail fuel volumes increased 7.9 percent from a year ago to 199.7 million gallons for the third quarter. That equates to 124,423 gallons per store per month on average. According to NACS, the average c-store sells 121,000 gallons of fuel per month annually. That means Susser stores sold about 2.8% more than the national monthly average.
Sam Susser, President and CEO said “We expect to continue to benefit from our geographic market focus in Texas, which is still faring better than many other parts of the U.S. due to our relatively stable housing market, continued strong population growth and robust job growth.”
The Company added five large format retail stores during the third quarter and closed two smaller stores, bringing the total number of retail stores in operation to 535.
For the 2011 fiscal year guidance figure, the report shows a range of $.15 – $.18 per gallon.
