EIA Gasoline and Diesel Retail Prices Update, December 11, 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 December 10, 2018. Retail prices for both fuels continued to fall. On a national average basis, gasoline prices fell by 3.0 cents/gallon, while diesel prices dropped by 4.6 cents/gallon. Gasoline prices have fallen dramatically since October, reaching a point where the national average price is now below where it was one year ago.

Crude oil, gasoline and diesel have suffered heavy losses in futures markets over the past two months. The downward trend leveled off during the week ended December 7. West Texas Intermediate (WTI) crude futures prices recovered slightly by $0.16/b during the week. Gasoline futures prices bounced back significantly, recovering by 7.32 cents/gallon. Diesel futures prices recovered by 4.37 cents/gallon. Retail prices during the week ended December 10 continued to decline, but to a lesser degree than in the prior week. As of the time of this writing, WTI futures crude prices have levelled out of their downward spiral, and they are maintaining levels above $52/b. Retail prices tend to lag crude price movements; if the current crude price trend persists, next week’s retail prices should show a modest decline.

For the current week ended December 10th, diesel prices dropped by 4.6 cents to an average price of $3.161/gallon. This was the eighth consecutive week that retail diesel prices have fallen. During these eight weeks, the price decline has amounted to 23.3 cents/gallon. Prices fell in all PADDs. The national average price was 25.1 cents per gallon higher than it was one year ago.

In the East Coast PADD 1, diesel prices fell by 3.5 cents to arrive at an average price of $3.194/gallon. Within PADD 1, New England prices declined by 1.5 cents to average $3.295/gallon. Central Atlantic diesel prices fell by 2.6 cents to average $3.368/gallon. Lower Atlantic prices fell by 4.5 cents to arrive at an average price of $3.053/gallon. PADD 1 prices were 29.3 cents/gallon above their prices for the same week last year.

In the Midwest PADD 2 market, retail diesel prices fell by 5.1 cents to average $3.066/gallon. Prices were 20.3 cents/gallon above their level for the same week last year.

In the Gulf Coast PADD 3, retail diesel prices dropped by 5.5 cents to average $2.934/gallon. This was the largest price decrease among the five PADDs. The week prior to this, PADD 3 became the first PADD where retail diesel prices dropped below the $3/gallon mark. Prices were 22.9 cents higher than for the same week in the previous year.

In the Rocky Mountains PADD 4 market, retail diesel prices fell by 5.2 cents to average $3.239/gallon. PADD 4 prices were 24.8 cents higher than in the prior year.

In the West Coast PADD 5 market, retail diesel prices fell by 4.2 cents to average $3.652/gallon. This price was 30.8 cents above its level from last year. Prices excluding California fell by 4.9 cents to reach an average of $3.357/gallon. This price was 28.5 cents above the retail price for the same week last year. California diesel prices decreased by 3.5 cents to arrive at an average price of $3.887/gallon. Until two weeks ago, California had been the only state where diesel prices exceeded $4/gallon. California diesel prices were 32.7 cents above last year’s price.

U.S. retail gasoline prices declined by 3.0 cents to average $2.421/gallon during the week ended December 10. Prices fell in all PADDs except for the Midwest PADD 2. The national average price was 6.4 cents per gallon lower than it was one year ago. Prices in PADDs 1, 2 and 3 are below their levels of one year ago. Retail prices for gasoline have fallen for the past nine weeks, slashing a massive 48.2 cents/gallon off the average retail price.

For the current week ended December 10, East Coast PADD 1 retail prices for gasoline dropped by 3.8 cents to average $2.384/gallon. The average price was 8.1 cents below last year’s price. Within PADD 1, New England prices fell by 3.5 cents to average $2.548/gallon. Central Atlantic market prices declined by 3.3 cents to average $2.552/gallon. Prices in the Lower Atlantic market dropped by 4.2 cents to average $2.232/gallon.

In the Midwest PADD 2 market, retail gasoline prices rose by 1.2 cents to reach an average price of $2.210/gallon. Four weeks ago, PADD 2 became the only PADD where gasoline pump prices were lower than they were one year ago. PADD 1 and 3 joined PADD 2 in this distinction two weeks ago. Prices for the current week were 16.1 cents/gallon lower than they were for the same week last year.

In the Gulf Coast PADD 3 market, gasoline prices dropped by 4.9 cents to average $2.074/gallon. PADD 3 continues to have the lowest average prices among the PADDs. Prices for the week were 14.2 cents lower than for the same week in 2017.

In the Rocky Mountains PADD 4 market, gasoline pump prices fell by 6.2 cents to arrive at an average of $2.655/gallon. Prices were 14.1 cents higher than at the same time in 2017.

In the West Coast PADD 5 market, retail gasoline prices dropped by 7.0 cents to arrive at an average of $3.171/gallon. This was the largest price drop among the PADDs. PADD 5 prices were 19.7 cents higher than at the same time a year ago. PADD 5 continues to have the highest gasoline prices among the five PADDs. Excluding California, West Coast prices decreased by 5.8 cents to average $2.987/gallon. This was 26.3 cents higher than at the same time in 2017. In California, pump prices dropped significantly by 8.1 cents to average $3.318/gallon. California prices were 19.8 cents per gallon above their levels from last year.