After a retail gasoline price crash during July 12-Dec. 6, totaling 51 cents per gallon (CPG), now the U.S. average regular-grade price has ticked up 2.04 cents to $3.1255, according to the most recent Lundberg Survey of U.S. fuel markets.
The small rise may prove to be a brief interruption of the decline rather than a harbinger of more rises.
Oil prices, the chief input, rose during the two weeks but were eroded in the past few days. West Texas Intermediate (WTI) crude oil closed $4.09 per barrel higher at $71.29 per barrel during the first of the two weeks, but thereafter dropped by $1.83 barrel to $69.46.
Even if oil prices recover from here, gasoline prices may be sluggish to follow because this is the lowest gasoline demand period of the year.
Through the end of January, gasoline consumption will be in its seasonal trough due to shorter daylight hours and discouraging weather.
The discount that consumers are currently getting on today's gasoline price versus that of a year ago is a paltry 8 cents. For the year, though, it is rosier: Preliminary Lundberg data show that this year's average retail gasoline price is 22 cents below the full-year 2023 price.
Retail margin is downright cheerful: Retailers did forfeit 1.81 CPG in regular-grade margin in the past two weeks, putting the national average apparent margin at 40.82 cents. Yet this margin is an impressive achievement and helps support not only retailer survival but upgrades and expansions within the national network, a pro-motorist development. Lundberg's annual retail margin data indicate that 2024 overall has brought about a penny loss in margin versus full-year 2023.
Here are two markets where margin contracted in the past two weeks: Los Angeles retailers lost 8.99 cents in margin as retail prices continued on their downward trajectory while wholesale price continued their up trend: The weighted average wholesale price combining the buying classes of trade gained 3.35 cents, to $2.7811. The retail average caved by 5.87 cents, to $4.2380 per gallon.
In Minneapolis, the weighted wholesale buying price jumped 11.9 cents gal., to $1.8972 between Dec. 6 and Dec. 20. But it had not translated to retail, and the average retail price was eroded a further 0.51 cents, to $3.0307 per gallon. Result: Average margin was punctured by 12.41 cents. This left average margin at 63.95 cents. It happens to be a margin far wider than Los Angeles retailers were left with in the Dec. 20 snapshot.
Click here for previous Lundberg Survey reports in CSP Daily News.
Trilby Lundberg is publisher of the Lundberg Survey of U.S. fuel markets. Lundberg Survey Inc. is based in Camarillo, California.
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