This week drivers experienced minimal price changes as retail gasoline and diesel both dropped $.05, while wholesale gasoline prices dropped $0.02 and diesel dropped $.14. Drivers should continue to see these prices decrease as we go deeper into winter. Oil is trading at a current cost of $78/barrel. This is a good sign for the fuel market as a whole. These trends are typical for this time of year as we head into the winter months so don’t get too excited.

Key Reasons For Lower Prices:

●  Winter fuel blends are cheaper to manufacture & distribute

●  Demand for gasoline is currently flat

●  Oil prices currently $78/barrel

Crude oil is trading below $80, at a current price of $78.32. This is $5 lower than it was last week, a significant drop that will continue to contribute to the lowered cost of fuel.

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. To give a comparison to Crude Oil pricing, it is trading around $78 per barrel today compared to $83 last week and $89 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above in addition to 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, it is advisable to consult local news outlets and industry reports to follow along with the market trends. 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.