Fuel Prices To Rise in September But Boom Can’t Last

Wright Express Monthly Fuel Price Index Report
August 2011
— Retail prices have risen in the past week and are expected to edge higher in the first half of September. The national average of $3.62 per gallon is almost $1 per gallon more than a year ago.

WEXIndex Retail Fuel Price Index is a monthly publication produced by Wright Express with market insights provided by OPIS Energy Group.
WEXIndex Retail Fuel Price Index is a monthly publication produced by Wright Express with market insights provided by OPIS Energy Group.
Refinery issues have had an impact on the market, with the Midwest and West Coast being the hardest hit. Summer fuel, which is still mandated to be used by the EPA, is in short supply and that will keep prices strong. Once stations are able to reduce prices on the summer production in order to make the winter supply, prices should start to slide. Offshore refineries that specifically produce winter fuel blends will begin shipping fuel to the U.S.

Recent reports by the Department of Energy have shown demand to be very poor, or lower than anticipated by as much as 3 percent. Most economists expect this trend in demand to continue into winter. Income spent on gas is currently averaging 8.4 percent – a record high so far. Last year it was only 6.7 percent. Increased disposable income spent on fuel costs means less is available to be spent on other goods and services, and that consumers are cutting back on driving.

Diesel prices will likely follow the same path with a stronger first half of the month and a drop toward the end. While diesel is currently $3.89 per gallon, it is an increase over the $2.24 per gallon at this time last year.

WRIGHT EXPRESS MONTHLY PPG AVERAGE REPORT BY CITY

FOR 08/2011:

 

CITY  

STATE 

UNL.  

DIESEL

Atlanta

GA  

$3.610  

$3.881

Boston

MA  

$3.739  

$4.009

Chicago

IL  

$3.922  

$3.935

Dallas

TX  

$3.498  

$3.789

Denver 

CO  

$3.438  

$3.819

Detroit 

MI  

$3.752  

$3.922

Houston

TX  

$3.485  

$3.745

Los Angeles 

CA  

$3.797  

$4.175

Memphis 

TN  

$3.500  

$3.809

Miami

 FL  

$3.744  

$3.948

Minneapolis

MN    

$3.706  

$3.934

New Orleans

LA  

$3.461  

$3.725

Philadelphia

PA  

$3.679  

$4.051

Phoenix

AZ  

$3.329  

$3.692

Portland

OR  

$3.745   

$3.816

San Francisco

CA  

$3.875  

$4.330

Seattle

WA  

$3.824  

$4.143

St. Louis

MO  

$3.413  

$3.708

Washington

DC  

$3.858  

$4.147

National Average          

USA

$3.608  

$3.875

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