CAMARILLO, Calif. -- The U.S. average retail price of regular grade gasoline dropped another 13.38 cents per gallon in the past two weeks, to $2.9421, according to the most recent Lundberg Survey of approximately 2,500 U.S. gas stations. This makes a total decline of more than 78 cents since the price peak back on May 2 this year. It is the lowest since Dec. 3, 2010.
Since October 24, crude oil was again the chief cause of the drop.
But up the pipeline from the street, instead of just a few spotty wholesale gasoline upticks as occurred in October, there is now firm evidence of a price turnaround. Even the U.S. average unbranded rack is up, more than four cents since November 5, with the average branded rack following close behind.
Refiner margin on gasoline was skimpy indeed, and has recovered less than a penny. The treats refiners got from lower crude have been passed out to many jobbers and marketers, who have been spreading the wealth to retailers.
Retail margin on regular grade gave up 7.26 cents in the past two weeks. But it managed 19.12 cents on November 7, one of its highest points this year and some three cents better than the year-to-date average.
If crude slips again and/or retailers forfeit a little bit more margin, then the pump price decline will continue. More likely, gasoline price cutting will soon slow to a stop.
Camarillo, Calif.-based Lundberg Survey Inc. is an independent market research company specializing in the U.S. petroleum marketing and related industries.
Click here for previous Lundberg Survey reports in CSP Daily News.
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