A Report On Retail Fuels Report Essay example

1015 Words Nov 3rd, 2015 null Page
There is perhaps no product that consumers think more about on a daily basis as nearly 40 million Americans fill up their gas tanks on a daily basis, oftentimes searching for a good price and convenient location, estimated 80% of which is sold by U.S. convenience stores. The 2015 NACS Retail Fuels Report contributed that, as 2015 commenced, oil and gas prices opened at a six-year low, and that could change as supply and demand shift, whether from world events or from the annual spring transition to summer-blend fuel. (Retail Fuels Report)

As the first week of February traditionally marks the beginning of the spring, gasoline prices have increased, on average, more than 50 cents since 2000. While the circumstances may be different year-to-year, the overall pattern in the petroleum markets is surprisingly familiar. (Retail Fuels Report)

According to the Retail Fuels Report, 2015, there are four aspects that can impact retail prices: • Fuel Type — Typically, stores that sell fuel under the brand name of a refiner pay a premium for that fuel. These branded stores also tend to face less wholesale price volatility when there are supply disruptions.

• Delivery method — Retailers who purchase fuels via “dealer tank wagon” may pay a higher price than those who receive their fuels at the terminal. A retailer may also contract with a jobber to deliver the fuel to his stations – the choice will influence his overall cost.

• Length of contract — The length of the…

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