CAMARILLO, Calif. -- The April 5 U.S. average regular-grade gasoline retail price is down 6.07 cents per gallon from two weeks ago, down 14.83 cents from six weeks ago, and down 32.04 cents from a year ago, according to the most recent Lundberg Survey of approximately 2,500 U.S. gas stations.
The year-ago price was last year's high, on April 6 at $3.9671 per gallon.
Prices of both benchmark crudes WTI and Brent slipped again in the past two weeks. Refiners, benefiting from that slippage and from growing access to lower-priced domestic and Canadian oil, have been passing the good news into wholesale gasoline prices. In fact, refiner margin on gasoline declined again, as it had in the prior two-week period.
Meanwhile retail margin swelled to 22.5 cents per gallon on regular grade, its highest since early November last year. Retail margin may soon decline as more retailers receive wholesale price cuts and share them with motorists. Since mid-week, U.S. average unbranded and branded racks are down 16 cents and 15 cents, respectively.
In the April 5 snapshot, retail margin gains were most impressive in the Gulf and Midwest regions. Margin was virtually no-change in the West. Margin on April 5 was single-digit in just a few markets scattered around the country, and above 30 cents in a few others.
The use rate of U.S. refining capacity is up, and gasoline supplies are ample. Despite the continuing transition to lower vapor pressure maximums required in spring and summer, which add to the cost of gasoline, retail prices are likely to slip further in the next few weeks if crude oil prices allow.
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.
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.