It was crude oil that allowed the drop. Crude has been sliding this month so far, and its latest two-week drop of $5 per barrel is already hitting wholesale gasoline markets nationally. If it stays around $70 per barrel, the wholesale plunge will play out and the apparent retail margin, [image-nocss] at the moment a glittering 27.52 cents on regular, will cavecausing another drop at the pump, perhaps 5 to 10 cents per gallon to perhaps $2.75 per gallon or less. This would all be trumped by a rapid, sizable and sustained crude oil price recovery, but a small upward oil price correction would not prevent further pump price slippage.
Competition for retail gasoline sales includes price deals beyond postings: in-store rebates by big-box grocers, rebates on consumers' bills from oil company credit-card sales and other schemes that speak to a motoring public weighted down by under-employment.
Compared with one year ago: Crude is $3.73 per barrel higher; the average retail price is 33.4 cents above; the weighted average wholesale price (branded/unbranded rack, DTW), at $2.07, is 8.56 cents higher; tax on gasoline is 1.35 cents higher; and retail margin is 23.49 cents above that of May 29 last year. Only refiner margin on gasoline, 0.39 cents per gallon lower than a year ago, is left out.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.