Second-Quarter Fuel Margins Hit Six-Year Low

July 22, 2015

Second-Quarter Fuel Margins Hit Six-Year Low

ST. PETERSBURG, Fla. — Rising wholesale prices in April and May weighed down second-quarter 2015 retail fuel margins to a six-year low.

That’s according to the latest C-Store Grab-N-Go research note by Raymond James & Associates, St. Petersburg, Fla., which analyzed the financial results of chains in a coverage area that includes Casey’s General Stores, CST Brands, Murphy USA, CrossAmerica Partners, Sunoco LP and TravelCenters of America.

National retail fuel margins for regular gasoline averaged about 16 cents per gallon (CPG) in the second quarter, an 8% drop from a year ago and 13% lower than the first-quarter 2015 average. This is despite the fact that for the month of June, national retail fuel margins were 7% higher vs. a year ago, and up 30% from May year-ago levels.

Raymond James cited a more than 20% jump in oil prices in April and May for the quarter’s year-over-year decline. Retail margins ranged from 10 to 22 CPG over the second quarter, but for the most part stayed under year-ago levels throughout the first nine weeks. The Southeast and state of Texas—which includes the retail stomping grounds of CST Brands and Murphy USA—saw the greatest margin compression, off 24% and 13%, respectively.

Second-quarter 2015 national diesel margins, meanwhile, were 8% higher year over year.

For the retail chains covered in aggregate, Raymond James has modeled second-quarter 2015 margins off 2 CPG from the first quarter, reflecting industry margin figures. For year over year, Raymond James projects that the group in aggregate will see a 1.7-CPG drop, which is also in line with national margin trends.

Author(s):

Samantha Oller

About jota

QOD

Located on the front page of our national website is a field called “Question Of The Day” (QOD). Each day we post a different question about the products and services that are presented through our website. The answer to this question can be found on one of our partner’s web pages. Our members will navigate through the preferred vendors page to find the answer to your question while subconsciously educating themselves about your company! AATAC effectively selects members who answer the question correctly to win rewards which include; rebates, complimentary services, cash, promotional offers from vendors, prizes, giveaways, etc. *Your QOD should be 1-2 sentences in length and can not name a specific product or company within the question.

Here are some examples:

Which preferred vendor offers your customers a 99% accurate drug test that reads results in five minutes?

One of our partner’s provides important compliance training classes in a virtual setting for a low cost. Who is it?

Your Vendor Category

When your logo and redirect are added to our preferred vendors catalog it offers two very important elements to members:

It tells them that your company has been vetted and approved for business within our network.

It encourages them to visit your website where they can learn more about your company.

*IMPORTANT:

It is recommended that you use your main homepage or general information page for the logo redirect.

Your category will be verified for “best fit” before being placed.

Vendors may not be placed in multiple categories.

Second-Quarter Fuel Margins Hit Six-Year Low