CAMARILLO, Calif. -- In the past two weeks, self-serve regular lost another 10.81 cents and now averages $2.1330, according to the most recent Lundberg Survey of approximately 7,000 U.S. gas stations. It is a total of 88 cents decline since September 9, thanks mostly to recovery after hurricane damage to Gulf Coast refineries.
But the dramatic down-price correction is now all but spent. Four factors indicate this: most refining capacity is back on stream; gasoline demand is recovering, thanks [image-nocss] to the price slide and strong economy; crude oil prices turned upward in the past few days; and retailers forfeited some earlier margin gains.
The evidence of a price turnaround is emerging, with some wholesale price hikes hitting late last week, especially unbranded rack. Retail prices are already responding, with many showing virtually no change from two weeks ago and some, chiefly in the Midwest, showing slight increases. Short term, barring any big change in crude oil prices, moderate retail price increases are likely.
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.