Mixed Bag for USA Fuel Prices

The U.S. Energy Information Administration’s (EIA) latest fuel update report outlined a mixed bag for U.S. fuel prices.

The report, which was released earlier this week, showed a declining price trend for U.S. regular gasoline and a rising price trend for on-highway diesel.  

U.S. regular gasoline prices came in at $3.868 per gallon on August 21, $3.813 per gallon on August 28, and $3.807 per gallon on September 4, according to the report, which highlighted that U.S. on-highway diesel prices came in at $4.389 per gallon on August 21, $4.475 per gallon on August 28, and $4.492 per gallon on September 4.

The EIA update showed that the West Coast had the highest U.S. regular gasoline ($4.912 per gallon) and on-highway diesel fuel prices ($5.390 per gallon) and that the Gulf Coast had the lowest U.S. regular gasoline ($3.364 per gallon) and on-highway diesel fuel prices ($4.171 per gallon), as of September 4.

According to the AAA Gas Prices website, the average price of regular gasoline in the U.S. is $3.808 per gallon on September 8. Yesterday’s average was $3.803 per gallon, the week ago average stood at $3.818 per gallon, the month ago average was $3.824 per gallon, and the year ago average was $3.751 per gallon, the site showed.

Average U.S. diesel prices stood at $4.463 per gallon on September 8, the AAA gas prices site highlighted. Yesterday’s average came in at $4.459 per gallon, the week ago average was $4.452 per gallon, the month ago average was $4.203 per gallon, and the year ago average was $5.040 per gallon, according to the AAA Gas Prices site.

GasBuddy’s live ticking average for regular gasoline in the U.S. was $3.802 per gallon, as of 5.30am EST on September 8, which the organization outlined was up slightly on yesterday’s and last week’s average prices, down slightly on last month’s average, and up slightly on last year’s average.

Future Prices

In its latest short term energy outlook, which was released last month, the EIA projected that the regular gasoline price would average $3.56 per gallon in 2023 and $3.45 per gallon in 2024. On highway diesel fuel was projected to average $4.17 per gallon this year and $3.94 per gallon next year in that STEO, which highlighted that, in 2022, the regular gasoline price averaged $3.97 per gallon and the on highway diesel fuel price averaged $5.02 per gallon.

“In our August STEO, we expect lower gasoline production to reduce inventories and increase gasoline prices and crack spreads (the difference in price between a gallon of gasoline and a gallon of crude oil) in 2H23 compared with the July STEO,” the EIA stated in the STEO.

“Previously, we assumed high crack spreads and more U.S. refining capacity in 2023 would contribute to rising gasoline production and inventory builds. However, a series of unplanned refinery outages this summer have limited increased refinery operations,” the EIA added.

The organization’s next STEO is scheduled to be released on September 12.

What Do You Pay for In a Gallon of Fuel?

In addition to showcasing fuel prices over the last few weeks, the EIA’s latest gasoline and diesel fuel update revealed what consumers paid for in a gallon of regular gasoline and diesel in the U.S. in July this year.

According to the report, which pegged the retail price of gasoline at $3.60 per gallon in July, 50 percent of that total went towards crude oil costs, 25 percent went towards refining costs, 14 percent went towards taxes, and the remaining 11 percent went towards distribution and marketing costs.

The update, which pegged the retail price of diesel at $3.88 per gallon in July, showed that 47 percent of this total went towards crude oil costs, 20 percent went towards refining costs, 19 percent went towards distribution and marketing costs, and 15 percent went towards taxes.

In a gasoline and diesel fuel update released last month, which put the retail gasoline price at $3.57 per gallon and the retail diesel price at $3.80 per gallon in June, the EIA outlined that 47 percent of the gasoline total went on crude oil costs, 24 percent went towards refining costs, 14 percent went towards distribution and marketing costs, and the remaining 14 percent went towards taxes.

Fourty-four percent of the June diesel total went towards crude oil costs, 22 percent went towards distribution and marketing costs, 18 percent went towards refining costs, and 15 percent went towards taxes, the EIA’s August fuel update showed.

To contact the author, email andreas.exarheas@rigzone.com