ST. PETERSBURG, Fla. -- First-quarter retail gasoline margins hit a record high in 2016, even though they were weighted heavily toward the beginning of the year.
According to the latest Convenience Store Grab-N-Go research note by Raymond James & Associates, St. Petersburg, Fla., national first-quarter 2016 margins rose 8% year over year, reaching almost 20 cents per gallon (CPG). Compared to the quarter’s three-year average, first-quarter 2016 margins were 14%, or about 2 CPG higher.
The quarter was a bit lopsided, however, in the size of margins. In January and February, national retail fuel margins beat year-over-year levels and the three-year averages for the two months. However, by March, margins fell 34% year over year because of challenging commodity trends that began in mid-February.
On a weekly basis from January through March, margins ranged from 10 to 30 CPG. For the first two months of the quarter, they stayed above year-ago levels.
National retail diesel margins in first-quarter 2016 fell 23% year over year but remained about 13% above the five-year average.
When compared to fourth-quarter 2015, first-quarter 2016 retail margins were down, with gasoline off 10% and diesel margins down 6%, or 1 CPG.
Raymond James’ coverage area includes Casey’s General Stores, CST Brands, Murphy USA, CrossAmerica Partners, Sunoco LP and TravelCenters of America.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.