Gasoline was deprived of exceeding $3-per-gallon mark, a number of questionable importance, by a slight retreat in crude over recent days, Lundberg said. The nearly 8 cent hike came from oil's increases of late November and early December. [image-nocss] All it would take is a 50-cent-per-barrel rise in the price of crude, or one-penny-per-gallon-margin improvement for either retailers or refiners, to put gasoline above $3 per gallon.
What is more important, to both consumers and marketers, are the year-ago price penalties: 39.16 cents per gallon for gasoline and 36.85 cents for diesel over averages back on December 18, 2009. With deep unemployment, these penalties sting and contribute to suppressed demand.
About one-third of major cities currently have average retail regular grade prices above $3per gallon, said Lundberg. About half have weighted wholesale prices above $2.36.
The average retail margin on regular regained its loss of two weeks ago and sits at 13.06 cents. In a few cities margin is depressed; on December 17, it ranges from 4 to 8 cents.
Oil prices remain propped up several dollars higher than supply and demand would otherwise put them, said Lundberg, thanks to monetary policy incentivizing investors to buy commodities such as oil. Thus, wholesale and retail fuel prices are also artificially high.
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 columns in CSP Daily News.)
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