This Week in Petroleum

Source:  Energy Information Administration
Released on August 27, 2008
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Gasoline and Diesel Prices Continue Downward Slide
The average retail price for regular gasoline fell once again in all regions of the country. The U.S. average price dropped 5.5 cents to 368.5 cents per gallon, a cumulative seven-week tumble of 42.9 cents from the all-time high of 411.4 cents per gallon reached July 7. The price on the East Coast sank 6.7 cents to 363.4 cents per gallon. Once again, the smallest drop of any region occurred in the Midwest, where the price dipped just 2.1 cents to 368.7 cents per gallon. The price in Gulf Coast remained the lowest of any region, plunging 8 cents to 351.9 cents per gallon. Even so, that price was still 86.7 cents higher than it was a year ago. The price in the Rocky Mountain region slid 5.4 cents to 383.4 cents per gallon. The West Coast price fell for the ninth week in a row, dropping another 7.4 cents to 390.6 cents per gallon. That price has plunged more than 55 cents since its all-time high set on June 23 but is still the highest average regional price in the nation. The average price in California fell another 8.2 cents to 395.5 cents per gallon, dipping below $4 for the first time since May 19.

The average U.S. retail diesel price dropped another 6.2 cents to 414.5 cents per gallon. In each of the past six weeks, prices have fallen in every region, with the U.S. average plunging nearly 62 cents from its all-time high set on July 14. Even with this drop, the U.S. average price remained 128.2 cents per gallon higher than it was a year ago. The average price on the East Coast slid another 6.4 cents to 419.9 cents per gallon. The price in the Midwest remained the lowest at 407.3 cents per gallon, reflecting a drop of 5.7 cents. The average price in the Gulf Coast fell 5.8 cents, to 409.8 cents per gallon. The price in the Rocky Mountains fell more than in any other region, tumbling 9.2 cents to 422.7 cents per gallon. Nonetheless, the Rockies’ cumulative six-week drop of 49.1 cents was the smallest of any region. The West Coast price retreated another 7 cents to 428.6 cents per gallon. In California, the average price fell to 435.9 cents per gallon, a drop of 6.3 cents.

Propane Inventories Continue Strong August Build
Primary stockholders continued to build propane inventories at a relatively strong pace during the third week of August, posting a 1.3 million-barrel gain that moved stocks up to an estimated 52.0 million barrels as of August 22, 2008. Inventory gains were reported in all major regions last week, leading with a 0.8 million-barrel increase in the Gulf Coast, followed with similar gains of 0.2 million barrels in the Midwest and the combined Rocky Mountain/West Coast areas. East Coast inventories rose by 0.1 million barrels during this same period. Propylene non-fuel use inventories moved up by 0.2 million barrels to account for a larger 6.1 percent share of total propane/propylene inventories from the prior week’s 5.8 percent share.

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