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CSP, Apr 14, 2025: Spring Bouquets Delivered to U.S. Downstreamers Pump price jumps, but retreat is likely April 14, 2025 CSPDailyNews.com Article: Both retail gasoline price and margin have jumped big time, but the bloom may soon be off that rose. Likewise, U.S. refiners have been delivered a felicitous improvement in the gasoline market, which may continue to bring smiles but maybe only until more of the sector’s seasonal repairs and maintenance projects are completed, enhancing supply During the three weeks March 17-April 7, the national average retail price moved up a hefty 18.5 cents, to $3.340, according to the most recent Lundberg Survey of U.S. fuel markets. At the same time, Lundberg’s weighted average wholesale moved up 7.2 cents to $2.326. That combo translated, with no change in the Lundberg U.S. average weighted tax on gasoline at 61.9 cents per gallon (CPG), to a big bump in retail margin of 11.3 CPG. Margin now perches at a far sweeter 39.5 cents. While both refiner and retailer gasoline margins have widened nicely, price gauging hunters are sleepy but not unconscious. Price spikes perk them up to frenzy. Much of the time, downstream gasoline margins are barely livable. If a price spike happens to occur while downstream gasoline margins are not acutely low, the usual accusations of abuse, not the margins, will be unconscionable. The price hike through April 7 includes spring reformulation costs in parts of the country, with most of the rest of the wholesale gasoline pool modified next month. But due to a general wholesale price down trend, they won’t stand out as visible. Oil prices, always the biggest influence on gasoline’s price direction and price, continued on its hairpin turn route as U.S. tariff levels, OPEC’s decisions, and China’s economy, among so many other vital inputs, continue to evolve. Since March 17, West Texas Intermediate (WTI) crude’s near-month futures price dropped $6.78 per barrel to $61.50. In the past week, WTI gained the equivalent of 2 CPG. Oil continues dancing on its tightrope, but OPEC’s accelerated output hikes start next month, a supply plus. The possibility of positive talks between the United States and Iran are another potential risk premium cutter and calmant for price. The United States, as well as other countries, embed their tariff responses and negotiations with major political subjects that are nontrade elements. Retail margins are trembling as big wholesale gasoline price reductions gain speed, and they can be expected to deflate as retailers pass through cuts to the street, sped by competition. Unbranded regular rack fell close to 13 CPG nationally in the past week alone, to $2.1296. Midwest branded rack has dropped more than 19 CPG since March 17, to $1.9798 per gallon. The country’s gasoline demand performance, while not impressive due in part to persistent inflation, will at least be ramping up with the calendar’s march to longer days and higher temperatures. So far, it appears that in coming days and weeks, oil prices and gasoline supply will be favoring motorists. 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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