Oregon Fuel Price Variance
Fuel Market News
Rack averages went up this week, while the retail price at the pump went down. The rack average price jumped $0.08/gal for both B5 & B20 and $0.07/gal for E10 gasoline. Retail prices dropped $0.05/gal for gasoline and $0.04/gal for diesel. As noted in last week’s report, demand for B5 will be diluted by the increased demand for B15 blends of diesel in the City of Portland. This is referenced by Mark Fitz in a recent collaboration with Stillwater Associates. We can expect fuel prices to climb slightly in the coming weeks as we enter the end of June in the full swing of the Summer Season into July.
Curious to learn more about R80/B20 blends? Book an appointment with one of our low-carbon fuel analysts.
City of Portland began their 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 trading above $80 for the first time in eight weeks, at a current price of $80.20/barrel, $1.95 higher than last week, as oil prices trended upward, for the second week in a row.
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 $80.20 per barrel compared to $78.25/barrel, last week and $84 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.