CHICAGO -- The outlook for fuel in the final years of this decade will largely be more of what we've seen so far, but just a little more or less of it.
That’s one takeaway from the motor-fuels outlook presented by Tom Kloza, global head of energy analysis for Oil Price Information Service (OPIS), Gaithersburg, Md., at the recent NACS State of the Industry Summit in Chicago.
Case in point: the past years’ run of low gasoline prices and its effect on consumers. From 2011 to 2014, consumers paid $1.4 trillion for gasoline, Kloza said. In the next four-year period, from 2015 to 2018 (assuming a projected average 2018 price of $2.56 per gallon), they will spend $1.33 trillion. Even assuming Congress passed a 23-cent-per-gallon increase on the federal gasoline tax in 2018, consumers would still save about a half-trillion dollars in this most recent four-year period.
“If you wonder why c-stores have had a good environment, that’s pretty much it,” he said. “Think about all of that extra disposable income.”
Read on for more of Kloza’s expectations for motor fuels in the rest of this decade—and beyond ...