WASHINGTON – According to the latest U.S. Energy Information Administration (EIA) report, the U.S. average retail price for regular gasoline was $3.68 per gallon on April 21, an increase of 39 cents/gal since the 2014 low in early February. This recent retail price increase is mostly the result of an increase in crack spreads (the difference between the price of wholesale gasoline and the price of crude oil) attributable to typical seasonal factors such as refinery maintenance and higher travel-related demand as the driving season begins.
In 2014, the average crack spread during the first four months of the year has been close to the five-year average. However, the 2014 seasonal increase has been modestly steeper than normal, which partially stems from lower-than-normal crack spreads in January and February. In its April 2014 Short-Term Energy Outlook (STEO), EIA forecasts that retail gasoline prices will continue to rise into May and then begin to ease as refinery runs peak, adding supply to the market.
The U.S. average price for regular gasoline increased three cents to $3.68 per gallon as of April 21, 2014, 15 cents more than the same time last year, and the highest average price since March 18, 2013. The East Coast and West Coast prices both increased five cents, to $3.66 and $4.03 per gallon respectively. Prices on the Gulf Coast increased two cents to $3.49 per gallon. The Rocky Mountain and Midwest prices were both up by a penny, to $3.45 and $3.64 per gallon respectively.
The U.S. average diesel fuel price rose two cents to $3.97 per gallon, eight cents higher than the same time last year. The West Coast price increased five cents to $4.03 per gallon. The Rocky Mountain and Gulf Coast prices both increased three cents, to $3.98 and $3.82 per gallon respectively. Midwest prices increased by a penny to $3.95 per gallon, while those on the East Coast increased by less than a penny to remain at $4.70 per gallon.
At the same time, U.S. propane stocks increased by 1.2 million barrels last week to 29.5 million barrels as of April 18, 2014, 9.4 million barrels (24.2%) lower than a year ago. Midwest inventories increased by 0.9 million barrels, while East Coast, Gulf Coast and Rocky Mountain/West Coast inventories each increased by 0.1 million barrels respectively. Propylene non-fuel-use inventories represented 10.5% of total propane inventories.
NACS Retail Fuels Report provides analysis and information related to gas prices, especially how they are affected by the spring transition to summer-blend fuels.