Oregon Fuel Price Variance
Fuel Market News
The market was volatile this past week as gas prices continued to drop and diesel prices bumped up. Rack averages for gasoline dropped $0.03 while diesel jumped $0.07/gal for B5 and $0.13/gal for B20. Some of this trickled down to the local level as the retail average in Oregon dropped $0.02/gal for gasoline and diesel.
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 trading below $80 for the fifth time in ten weeks, at a current price of $74.46/barrel, $3.97 lower than last week, as oil prices trend downward, for the first time in the last two weeks.
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 $74.46/barrel compared to $78.43/barrel, last week and $79 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.