Summer Fuel prices may be dropping in time for your planned travel.

May 9th, 2023

Normally this is not true when the winter summer switch takes place.


Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc

According to a recent article in the San Diego Tribune titled EPA allows gasoline with higher ethanol blend during summer by SCOTT McFETRIDGE, fuel stations throughout the country will be able to sell gasoline blended with 15% ethanol during the summer under an emergency waiver issued Friday by the Environmental Protection Agency in a move that could reduce prices at the pump and boost demand for the Midwest-based ethanol industry.

 So just what is the difference between Summer and Winter Fuel.

The following according to Gas Buddy.

Summer Gasoline:

In the warmer months, gasoline has a greater chance of evaporating from your car’s fuel system. This can produce additional smog and increased emissions. Refiners reduce the chance of gas evaporation in your car during the summer by producing gasoline blends that have lower Reid vapor pressure (RVP), or lower volatility. These blends vary from state-to-state, region-to-region due to RVP state regulations. They also vary by octane level.

Cost for your wallet: According to NACS, this higher-grade fuel can add up to 15 cents per gallon to the cost of your fill-up. This excludes the increased cost due to summer fuel demand, which can vary between 5-15c/gal, depending on the region. More stringent requirements (like California) can mean an even higher cost.

Winter Gasoline:

In winter, gasoline blends have a higher Reid vapor pressure, meaning they evaporate more easily and allow gasoline to ignite more easily to start your car in cold temperatures. This blend is cheaper to produce, which results in lower gas prices at the pumps from late September through late April.

Cost for your wallet: Prices typically fall 10-30c/gal starting in mid/ late September through late November as gas stations switch to winter gasoline and demand for gasoline falls seasonally as we start to stay closer to home. Many retailers continue to sell summer gas until their inventories run out before then selling winter gasoline. Hurricane season can also affect prices before the switch, ending in a squeeze just before the switch since refiners don’t want excess expensive summer gasoline sitting around and especially if refineries are in the path of a major storm.

SafeSourcing regularly sources several different types of fuel including gasoline for resale for our customers. And while the savings may not be in percentage points like other commodities and services, basis points savings can add up quickly based on the volumes being pumped.

SafeSourcing is a Procure to Pay SaaS based provider of a number of e-Procurement solutions and associated white glove services that are part of our SaaS offered SafeSourceIt™ eSourcing suite. That includes our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.

To learn more, please contact a SafeSourcing customer services associate.


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