CAMARILLO, Calif. -- Since March 18, crude oil prices have gained and lost on a jagged path, but by April 8 landed only a little higher than they were three weeks ago. So they contributed little to the 8.4 cents per gallon rise at the pump, according to the most recent Lundberg Survey of approximately 2,500 U.S. gas stations.
The bulk of the eight-cent increase came from the U.S. gasoline market's own trends. Refiners raised wholesale prices due to formulation mandates, and they managed a minor recovery in gasoline margin. Retailers meanwhile enjoyed margin recovery, on average.
Retail margin sat at 16.8 cents per gallon for regular grade on April 8, nearly four cents better than on March 18. It essentially recovered its March 4 position. But it is still a far cry from the 22- to 25-cents-per-gallon margin on regular that they achieved in late January through February.
Crude oil can be counted on to move the gasoline price, and will be noticeable if price changes are significant and sustained. But if it continues gyrating up and down, OPEC or no OPEC, pump prices still are more likely than not to continue edging up. Not a surge but a gentle swell, as the May 1 refinery-level deadline and June 1 point of consumption deadline for the summer blend loom close, against the backdrop of gasoline demand strength both seasonally and year on year—unless oil prices climb decisively or U.S. gasoline supply takes a dive.
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 reports in CSP Daily News.
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