CStore Decisions

  • Home
  • Today on CSD
  • Categories
    • CBD
    • Foodservice
    • Fuel & Gas
    • Health & Beauty
    • Independent Operators
    • Operations & Marketing
    • Technology
  • CStore Playbooks
    • Alcoholic Beverage Playbook
    • Candy Playbook
    • CBD Playbook
    • Foodservice Playbook
    • Technology Playbook
    • Tobacco Playbook
  • Products
    • 2022 Hot New Product Contest
    • Hot New Products Contest
    • Beverages & Cold Vault
    • Candy, Gum & Mints
    • Snacks
    • Tobacco
  • Resources
    • Digital Issues
    • Research & Downloads
    • Podcasts/How To Series
    • On Location
    • FAQ
    • 2022 Top 111 Chains
    • Leaders in Convenience
    • Rack Prices
    • Sponsored Content
    • Videos
    • Webinars / Digital Events
    • White Papers
  • Events
    • 2021 Chain of the Year
    • Convenience Directions
    • NAG Convenience Conference
    • Young Executive Organization
  • Join
    • National Advisory Group
    • Safe Shop Assured
    • Young Executive Organization

Retail Fuel Prices Edge Lower in Early June

By CSD Staff | June 7, 2010

Share

By Brian L. Milne, Refined Fuels Editor, Telvent DTN

The U.S. average price for regular grade gasoline sold at retail outlets dropped nearly 18 cents or 6% from a May 10 multi-month high at $2.905 a gallon to $2.728 gallon on Memorial Day, a time when retail prices have typically surged. 

The decline is less than half of the loss posted by the futures contract for gasoline, which is financially traded and used as a hedging tool by oil companies and a way to invest in the market by speculators, during May.

View DTN’s Weekly and Historical Gas Price Index.

Labor Influence
The wholesale market was moving higher again in early June, but hit headwinds after the US Department of Labor showed limited job growth in the private sector in May. The monthly report did show a decline in the jobless rate from 9.9% in April to 9.7% in May, but that was due to more people giving up on attempts to find a job. In fact, the employment-population ratio remains weak at 58.7% in May.

The employment report had been hyped ahead of its June 4 release, with market expectations calling for strong jobs growth data to be revealed, which accelerated heavy selling in commodities and equities on fears of slower economic growth. The jobless report coincided with fears that Hungary might default on its debt, adding to the market’s anxiety and increasing selling pressure, although Hungary later backtracked from comments made by one of the state’s officials.

The linkage to gasoline prices is the rate of demand. The gasoline consumption rate has been gradually improving this year after it cratered during the Great Recession, and expectations have been that demand would ramp higher with the US economic recovery. Macroeconomic data challenging that assumption has sparked selling.

The many factors impacting the oil market continues to heighten price volatility, while the longer-term trend does still point to higher prices. In early June, some additional pass through savings from May’s decline will look to filter to retail outlets.

However, consumers should not expect sharp declines at their retail outlets, with savings at the pump to be gradual. 

About the Author
Brian L. Milne is the Refined Fuels Editor for Telvent DTN-a leading business-to-business provider of real-time commodity information services. Milne has been focused on the energy industry for more than 14 years as an analyst, journalist and editor. He can be reached at [email protected].

Related Articles Read More >

FDA Temporarily Suspends Juul Marketing Denial Order
Competitor Update: What C-Stores Need to Know
Buc-ee’s Opens First Tennessee Location
Yesway Continues Expansion With New Texas Allsup’s Stores
Safe Shop Assured

CStore Decisions Newsletter

Sponsored Content

  • Create Some Positivity at the Pump: 3 Ways to Fuel Customer Experiences
  • How Minuteman Food Mart Ensures a Consistent Customer Experience Across 44 Stores
  • Three Challenges Disrupting C-Store Operations and How to Overcome Them
  • Why Wait? Converting to E15 is easy.
  • It’s time you profited from your checkout line

Get the Magazine

Subscribe Now!
Subscribe Now!

Manage Current Subscription
CStore Decisions
  • New CSD Print Subscription
  • Manage current print subscription
  • CBD Retail Trends
  • CStore Products
  • NAG Convenience Conference
  • Convenience Directions
  • Rack Prices
  • Subscribe to CSD’s E-Newsletter
  • About CStore Decisions
  • Advertise

Copyright © 2022 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search CStore Decisions

  • Home
  • Today on CSD
  • Categories
    • CBD
    • Foodservice
    • Fuel & Gas
    • Health & Beauty
    • Independent Operators
    • Operations & Marketing
    • Technology
  • CStore Playbooks
    • Alcoholic Beverage Playbook
    • Candy Playbook
    • CBD Playbook
    • Foodservice Playbook
    • Technology Playbook
    • Tobacco Playbook
  • Products
    • 2022 Hot New Product Contest
    • Hot New Products Contest
    • Beverages & Cold Vault
    • Candy, Gum & Mints
    • Snacks
    • Tobacco
  • Resources
    • Digital Issues
    • Research & Downloads
    • Podcasts/How To Series
    • On Location
    • FAQ
    • 2022 Top 111 Chains
    • Leaders in Convenience
    • Rack Prices
    • Sponsored Content
    • Videos
    • Webinars / Digital Events
    • White Papers
  • Events
    • 2021 Chain of the Year
    • Convenience Directions
    • NAG Convenience Conference
    • Young Executive Organization
  • Join
    • National Advisory Group
    • Safe Shop Assured
    • Young Executive Organization