Gasoline Margins Hit 15-Month Low
Southeast hurting the most, dipping below 10 CPG
ST. PETERSBURG, Fla. -- National retail gasoline margins hit a 15-month low this spring, according to research from the analysts at Raymond James, St. Petersburg, Fla.
For the month of April, retail fuel margins for regular unleaded hit “an extremely weak 15-month low, averaging 13.7 cents per gallon or 36% below year-ago levels (-7.8 CPG year over year) and 25% below April’s three-year average,” according to the report.
The report states the dual cause of the margin crash as being “tied to the switch to summer-grade gasoline and pump prices trailing the related rise in wholesale pricing.”
Regionally, retail gasoline margins trended “below year-ago levels across the country and, similar to national trends, moved sequentially lower from profit levels witnessed in March.”
Raymond James’ analysis of margin trends by region:
Discouraging for The Pantry, industry margins in the southeastern United States declined approximately 10.8 CPG year over year or 53% and declined 1.5 CPG sequentially from the prior month to 9.4 CPG for the 4-weeks ended April 28, 2014.
Discouraging for Susser Holdings and CST Brands, industry fuel margins in Texas declined approximately 7.9 CPG year over year or 41% but increased 0.4 CPG sequentially from the prior month to 11.6 CPG.
Indicative of margins for Casey's General Stores, industry fuel margins in the Midwest region declined approximately 4.9 CPG year over year or 23% but increased 0.6 CPG sequentially from the prior month to 16.6 CPG.