EIA Gasoline and Diesel Retail Prices Update, November 27, 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 November 26, 2018. Retail prices for both fuels fell in all PADDs countrywide. On a national average basis, gasoline prices plunged by 7.2 cents/gallon, while diesel prices fell by 2.1 cents/gallon. Gasoline prices have fallen dramatically in October and November, reaching a point where the national average price is nearly back to where it was one year ago.

Futures prices for crude and products collapsed during the week ended November 23rd. West Texas Intermediate (WTI) crude futures prices dropped by $6.61/b during the week. Gasoline futures prices collapsed by 18.65 cents/gallon. Diesel futures prices plummeted by 20.24 cents/gallon. Retail prices during the week ended November 26th declined, but not nearly at the rate that futures prices fell. As of the time of this writing, WTI futures crude prices are approximately $51.50/b. Retail prices should continue to decline this week.

For the current week ended November 26, diesel prices declined by 2.1 cents to an average price of $3.261/gallon. This was the sixth consecutive week that retail diesel prices have fallen. During these five weeks, the price decline has amounted to 13.2 cents/gallon. Prices fell in all PADDs. The national average price was 33.5 cents per gallon higher than it was one year ago.

In the East Coast PADD 1, diesel prices fell by 1.8 cents to arrive at an average price of $3.277/gallon. Within PADD 1, New England prices declined by 1.8 cents to average $3.344/gallon. Central Atlantic diesel prices fell by 1.9 cents to average $3.447/gallon. Lower Atlantic prices declined by 2.0 cents to arrive at an average price of $3.145/gallon. PADD 1 prices were 37.0 cents/gallon above their prices for the same week last year.

In the Midwest PADD 2 market, retail diesel prices fell by 3.1 cents to average $3.185/gallon. This was the largest price decrease among the five PADDs. Prices were 30.1 cents/gallon above their level for the same week last year.

In the Gulf Coast PADD 3, retail diesel prices declined by 1.0 cent to average $3.035/gallon. Prices were 32.3 cents higher than for the same week in the previous year.

In the Rocky Mountains PADD 4 market, retail diesel prices fell by 2.1 cents to average $3.339/gallon. PADD 4 prices were 31.3 cents higher than in the prior year.

In the West Coast PADD 5 market, retail diesel prices fell by 2.8 cents to average $3.739/gallon. This price was 35.9 cents above its level from last year. Prices excluding California fell by 2.0 cents to reach an average of $3.455/gallon. This price was 34.2 cents above the retail price for the same week last year. California diesel prices dropped by 3.6 cents to arrive at an average price of $3.964/gallon. Until this week, California had been the only state where diesel prices had exceeded $4/gallon. Prices had been above the $4/gallon mark for the previous eight weeks. California diesel prices were 36.7 cents above last year’s price.

 

U.S. retail gasoline prices dropped significantly by 7.2 cents to average $2.539/gallon during the week ended November 26. Prices fell in all PADDs. The national average price was a mere 0.6 cents per gallon higher than it was one year ago, and prices in PADDs 1, 2 and 3 are now below their levels of one year ago. Retail prices for gasoline have fallen for the past seven weeks, amounting to a massive price drop of 36.4 cents/gallon.

For the current week ended November 26, East Coast PADD 1 retail prices for gasoline dropped by 5.6 cents to average $2.498/gallon. The average price was 1.0 cent below last year’s price. Within PADD 1, New England prices fell by 2.7 cents to average $2.647/gallon. Central Atlantic market prices dropped by 3.6 cents to average $2.645/gallon. Prices in the Lower Atlantic market dropped by 7.9 cents to average $2.463/gallon.

In the Midwest PADD 2 market, retail gasoline prices plunged by 10.3 cents to arrive at an average price of $2.314/gallon. This was the largest price drop among the PADDs. Two weeks ago, PADD 2 became the only PADD where gasoline pump prices were lower than they were one year ago. PADD 1 and 3 now join PADD 2 in this distinction. Prices for the current week were 10.8 cents/gallon lower than they were for the same week last year.

In the Gulf Coast PADD 3 market, gasoline prices dropped significantly by 9.2 cents to average $2.216/gallon. PADD 3 continues to have the lowest average prices among the PADDs. Its prices are now below where they were one year ago. Prices for the week were 4.6 cents lower than for the same week in 2017.

In the Rocky Mountains PADD 4 market, gasoline pump prices fell by 3.2 cents to arrive at an average of $2.796/gallon. Prices were 25.8 cents higher than at the same time in 2017.

In the West Coast PADD 5 market, retail gasoline prices fell by 4.0 cents to arrive at an average of $3.308/gallon. This price was 27.3 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 2.7 cents to average $3.100/gallon. This was 35.0 cents higher than at the same time in 2017. In California, pump prices dropped by 4.8 cents to average $3.478/gallon. California prices were 27.8 cents per gallon above their levels from last year.