Wholesale gasoline buying prices moved up smartly in the past two weeks, but retail prices did not.
The national average retail price of regular grade gasoline is $3.116, the same as it was two weeks ago, according to the most recent Lundberg Survey of U.S. fuel markets. Wholesale prices rose 10.9 cents per gallon on average, but retailers have not yet passed it through to motorists.
This cost them 10.9 cents in gasoline margin, at least for now.
During the period, crude oil prices dropped some, that didn't generally translate to lower prices at refinery racks and distribution terminals because gasoline output is seasonally crimped during a heavy round of refining repairs and maintenance. In the aggregate, U.S. refining capacity utilization continued to shrink; it is now at 86%.
Demand is the Bad Boss right now. It is shrinking significantly year-on-year as well as seasonally, dominating the wholesale market and costing industry sales. Retailers in particular are under pressure to recover margin, but if wholesale prices retreat in coming days then any retail margin recovery will not be visible in street price moves.
The current retail price is 4 cents lower than it was one year ago.
And, year-to-date in 2025, it is 19 cents lower than it was during full calendar year 2024. These metrics are not enough, though, to beckon U.S. gasoline demand to expand, or even stop falling.
Wholesale gasoline price increases now hitting dealers and other retailers averaged 13.79 cents for regular grade branded rack, $2.2594 on Nov. 7. In the West, due to its idled refining capacity during repairs, the average unbranded rack price surged 28.6 cents per gallon.
In the past two weeks with branded rack, Dealer Tank Wagon (DTW) and jobber-supplied DTW prices are revealing similar surges. Of note, the Petroleum Administration for Defense Districts (PADD) 5 branded-unbranded rack price spread was 14.31 cents per gallon on Nov. 7, far wider than the U.S. average branded-unbranded spread of just 6.25 cents.
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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