Petroleum Product Wholesalers NAICS 424720

Apr 23, 2025 - Lower Summer Gas Prices

• The Energy Information Administration is forecasting the inflated-adjusted US average regular gasoline price this summer to be the lowest since 2020. The summer 2025 average price of about $3.10 per gallon is based on the average of the 2Q25 and 3Q25 US regular gasoline price, when increased travel during the warmer months of the year puts upward pressure on gas prices. Looking ahead to 2026, EIA is forecasting a US average summer retail price of regular gas near $3.20 per gallon. Compared with recent years, lower forecasted US gasoline prices in 2025 and 2026 are mainly a result of lower crude oil prices. Although the agency expects crude oil prices to continue to fall in 2026, creating a downward effect on gasoline prices, that effect is offset by refinery closures and lower gasoline inventories, which cause refining margins for gasoline to rise.
• President Trump has moved to pull the plug on the National Electric Vehicle Infrastructure program (NEVI), his predecessor’s initiative to build a nationwide network of EV charging stations, Politico reports. In February, Trump instructed states not to spend federal funds previously allocated to them under the program. In a letter to state transportation directors, the Federal Highway Administration said that it was scrapping guidance issued in 2023 implementing the NEVI program. However, the letter says states will be able to receive reimbursements for “existing obligations” to design and build stations “in order to not disrupt current financial commitments.” Whether Trump can choose not to spend funds allocated by congress is likely to face legal challenges. Still, Trump's move to block future EV charging station construction and his pro fossil fuels policies, brightens the outlook for suppliers of traditional motor fuels.

• Global demand for crude oil is expected to weaken in 2025 dragging crude prices down with it, The Wall Street Journal reported in December. A survey of analysts compiled by WSJ showed Brent crude is expected to average $71.57 a barrel in 2025, while West Texas Intermediate is seen at $67.44 a barrel. By comparison, in a November survey the analysts had forecast the benchmarks at $74.44 and $69.67 a barrel, respectively. “The strengthening dollar, uncertainties surrounding global demand, and the ongoing supply constraints imposed by OPEC+ continue to influence investors,” Quasar Elizundia, research strategist at broker Pepperstone, told WSJ. Planned production hikes by OPEC+ – put on hold due to demand concerns and weak prices – haven't eased fears of an oversupplied market. According to the International Energy Agency, the oil market still faces a surplus of 950,000 barrels a day in 2025, WSJ reports.
• Employment by petroleum product wholesalers was relatively flat in January compared to a year ago, while average industry wages rose 8.6% over the same period to a new high of $33.72 per hour, according to the latest US Bureau of Labor Statistics data. Sales for distributors of petroleum products slumped 5.6% year over year in February and were unchanged from January, extending their sharp decline from their peak in June 2022, Census Bureau data shows. In April, the price of oil in the US fell to its