Gasoline Retailers Hold Pump Prices High as Margins Widen to 40 Cents a Gallon
Updated
Updated · The New York Times · Jul 6
Gasoline Retailers Hold Pump Prices High as Margins Widen to 40 Cents a Gallon
3 articles · Updated · The New York Times · Jul 6
Summary
Gas stations have been slow to cut pump prices even as oil has fallen back near pre-conflict levels, drawing accusations that retailers are using the lag to protect or rebuild profits.
Dow Jones Oil Price Information Service data show the gap between wholesale gasoline costs and retail prices has widened over the past decade to about 40 cents a gallon from roughly 20 cents.
Industry experts say some of that spread reflects higher operating costs, but they also see an extra-profit component when prices fall after supply shocks.
High-volume chains such as Wawa and Buc-ee’s can buy fuel more cheaply in bulk than many independents, giving larger retailers more room to benefit from the slower pass-through.
Trump last week urged retailers to "DROP YOUR PRICE," echoing similar White House pressure in 2022 when Biden warned against gasoline price gouging after Russia's invasion of Ukraine.