Fuel Market News
The market experienced a mix of price fluctuation this week, as rack averages dropped but retail didn’t budge much. E10 dropped $0.05, B5 dropped $0.10 and B20 dropped $0.02. All the while retail averages fell $0.03. Fuel prices have trended downwards for the past few weeks and are still relatively low compared to prices seen earlier in the year. Demand for B20 has continued to rise with the Portland RFS. All B5 blends within the city of Portland are only dyed blends for off-road usage. Overall the summer has been pretty calm for price jumps thus far.
The City of Portland began its fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it.
To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.
Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.
Reasons For Price Variance:
Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $81.00 per barrel compared to $82.07/barrel, last week and $85 a year ago.
It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.
If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.