EIA Fuel Update Shows Rising Price Trend

The U.S. Energy Information Administration’s (EIA) latest gasoline fuel update, which was released on April 7, showed a rising price trend for U.S. regular gasoline.

According to the update, the average U.S. regular gasoline price was $3.961 per gallon on March 23, $3.990 per gallon on March 30, and $4.120 per gallon on April 6. The April 6 price marked a $.0130 increase from the week ago price, a $0.877 increase from the year ago price, and a $0.529 increase from the price two years ago, the fuel update outlined.

Of the five Petroleum Administration for Defense District (PADD) regions highlighted in the EIA’s latest fuel update, the West Coast was shown to have the highest regular gasoline price as of April 6, at $5.396 per gallon. The Midwest was shown in the update to have the lowest regular gasoline price as of April 6, at $3.771 per gallon.

A glossary section of the EIA site notes that the 50 U.S. states and the District of Columbia are divided into five districts, with PADD 1 further split into three subdistricts. PADDs 6 and 7 encompass U.S. territories, the site adds.

According to the AAA Fuel Prices website, the average price of regular gasoline in the U.S. is $4.164 per gallon, as of April 8. Yesterday’s average was $4.140 per gallon, the week ago average was $4.064 per gallon, the month ago average was $3.450 per gallon, and the year ago average was $3.246 per gallon, the site showed.

In a blog posted on its website on April 6, GasBuddy noted that, according to its data, the U.S. average price of gasoline had risen 11.8 cents over the last week and highlighted that it stood at $4.08 per gallon.

“The national average is up 65.1 cents from a month ago and is 85.0 cents per gallon higher than a year ago,” GasBuddy said in its Monday blog post.

In the post, GasBuddy said the most common U.S. gas price encountered by motorists stood at $3.99 per gallon, “unchanged from a week ago”. This was followed by $3.89, $3.79, $4.19, and $3.69, GasBuddy noted.

The median U.S. gas price was $3.89 per gallon, according to the post, which outlined that this was up 10 cents from last week “and about 17 cents lower than the national average”. The top 10 percent of stations in the country averaged $5.65 per gallon and the bottom 10 percent averaged $3.36 per gallon, the post pointed out.

“Gasoline prices are poised for another jolt this week, with many inland states - including the Plains, Great Lakes, and parts of the Rockies - likely to see sharp increases as last week’s surge in wholesale costs has yet to be fully passed through to consumers,” Patrick De Haan, head of petroleum analysis at GasBuddy, warned in that blog.

“In addition, some price-cycling markets could also see another round of increases. As a result, the national average could rise by double digits, potentially reaching the $4.20 to $4.35 per gallon range in the days ahead,” he added.

“Recent escalations between the U.S. and Iran have further intensified concerns about prolonged disruptions to global oil flows, keeping markets on edge,” he continued.

“At this point, the trajectory of fuel prices remains highly uncertain and is largely contingent on the reopening of the Strait of Hormuz. Until that occurs, the risk of further increases remains firmly in place,” De Haan went on to state.

In a statement sent to Rigzone on Wednesday, Naeem Aslam, CIO at Zaye Capital Markets, noted that oil had “sharply repriced lower into the mid-$90s, with WTI and Brent down 13-15 percent intraday as a two-week Strait of Hormuz ceasefire triggers a rapid unwind of geopolitical risk premium following the $110+ spike”.

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