EIA Gasoline and Diesel Retail Prices Update, August 14, 2018

Analysis by Dr. Nancy Yamaguchi

 

The U.S. Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended August 13, 2018. Prices for both fuels fell on a national average basis. Gasoline prices decreased by 0.9 cents/gallon. Diesel prices declined by 0.6 cents/gallon.

West Texas Intermediate (WTI) crude prices fell by $1.02/b over the course of the week from August 6 through August 10. Supply concerns stemming from the re-imposition of U.S. sanctions on Iran appeared to be outweighed by concerns over the impact of the U.S.-China trade war, plus troubles in emerging markets such as Turkey. This is eroding confidence in the future of global economic activity and demand. As of the time of this writing, WTI forward prices are hovering around $68/b, following a nosedive on Monday morning caused by the collapse of the Turkish Lira. At its low, WTI prices fell below $66/b. Current prices are $67.89/b. Gasoline and diesel futures prices also are in a period of recovery.

For the current week ended August 13, diesel prices declined by 0.6 cents to settle at an average price of $3.217/gallon. Prices decreased in all PADDs. The price movements were small, amounting to a fraction of a penny in all PADDs other than PADD 2. The national average price was 61.9 cents per gallon higher than it was one year ago.

In the East Coast PADD 1, diesel prices declined by 0.3 cents to arrive at an average price of $3.219/gallon. Within PADD 1, New England prices decreased by 0.6 cents to average $3.265/gallon. Central Atlantic diesel prices also fell by 0.6 cents to average $3.387/gallon. Lower Atlantic prices declined by 0.2 cents to arrive at an average price of $3.091/gallon. PADD 1 prices were 59.5 cents/gallon above their prices for the same week last year.

In the Midwest PADD 2 market, retail diesel prices dropped by 1.2 cents to average $3.139/gallon. This was the largest price decrease among the five PADDs. Prices were 56.9 cents/gallon above their level for the same week last year.

In the Gulf Coast PADD 3, retail diesel prices decreased by 0.5 cents to average $2.990/gallon. This price was 58.0 cents higher than for the same week in the previous year. PADD 3 is the only market where diesel prices are below $3/gallon.

In the Rocky Mountains PADD 4 market, retail diesel prices declined by 0.3 cents to average $3.358/gallon. PADD 4 prices were 65.8 cents higher than in the prior year.

In the West Coast PADD 5 market, retail diesel prices fell by 0.3 cents to average $3.714/gallon. This price was 83.7 cents above its level from last year. Prices excluding California decreased by 0.7 cents to average $3.425/gallon. This price was 63.7 cents above the retail price for the same week last year. California diesel prices decreased slightly by 0.1 cents to arrive at an average price of $3.942/gallon. Ten weeks ago, California prices had topped the $4/gallon mark. California diesel prices were 99.3 cents above last year’s price.

U.S. retail gasoline prices dropped by 0.9 cents to average $2.843/gallon during the week ended August 13. Prices fell in PADDs 2, 3, and 5. Prices rose in PADDs 1 and 4. The national average price was 45.9 cents per gallon higher than it was one year ago.

For the current week ended August 13, East Coast PADD 1 retail prices for gasoline edged up by 0.1 cents to average $2.803/gallon. The average price was 47.6 cents higher than last year’s price. Within PADD 1, New England prices fell by 0.8 cents to average $2.882/gallon. Central Atlantic market prices fell by 0.3 cents to average $2.927/gallon. Prices in the Lower Atlantic market increased by 0.4 cents to average $2.703/gallon.

In the Midwest PADD 2 market, retail gasoline prices dropped by 2.5 cents to arrive at an average price of $2.748/gallon. This was the largest price drop among the PADDs. Gasoline pump prices were 44.9 cents higher than they were one year ago.

In the Gulf Coast PADD 3 market, gasoline prices fell by 0.4 cents to average $2.586/gallon. PADD 3 continues to have the lowest average prices among the PADDs. Prices for the week were 44.1 cents higher than for the same week in 2017.

In the Rocky Mountains PADD 4 market, gasoline pump prices rose by 2.0 cents to average $2.944/gallon. PADD 4 prices were 51.8 cents higher than at the same time in 2017.

In the West Coast PADD 5 market, retail gasoline prices dropped by 1.3 cents to arrive at an average of $3.329/gallon. This was 46.4 cents higher than at the same time a year ago. PADD 5 continues to have the highest gasoline prices among the five PADDs. During the year to date, PADD 5 has been the only PADD where retail gasoline prices have exceeded $3/gallon. Excluding California, West Coast prices fell by 1.4 cents to average $3.132/gallon. This was 52.3 cents higher than at the same time in 2017. In California, pump prices fell by one penny to average $3.491/gallon. California prices were 47.7 cents per gallon above their levels from last year.