U.S. gasoline prices have fallen to their lowest level in four years, averaging $2.98 per gallon, while a top-tier fuel retailer reports a 12% year-over-year earnings increase. The dual developments signal shifting dynamics in energy markets and consumer spending.
- Average U.S. gasoline prices fell to $2.98 per gallon—lowest in four years
- MRO reported 12% year-over-year EPS growth, reaching $1.35
- MRO's revenue rose 7% YoY to $14.2 billion
- Non-fuel convenience store sales grew 9% for MRO
- XOM and CVX both rose over 1% on improved market sentiment
- Lower fuel prices are easing inflationary pressures and boosting consumer spending
Average gasoline prices across the United States have declined to $2.98 per gallon, the lowest level since late 2021, according to recent data. This marks a 24% decrease from the peak seen in mid-2023, driven by lower crude oil costs, increased refining output, and seasonal demand softening. The drop has eased inflationary pressures on consumers and is expected to boost discretionary spending in the holiday season. Midway through the fourth quarter, a major national gas station chain—identified by its ticker MRO—reported adjusted earnings per share of $1.35, a 12% increase from the same period last year. Revenue rose 7% year-over-year to $14.2 billion, fueled by higher transaction volumes despite lower fuel margins. The company attributed the performance to strategic store expansions and improved non-fuel retail operations, including convenience store sales growth of 9%. Energy sector stocks reacted positively, with ExxonMobil (XOM) rising 1.8% and Chevron (CVX) up 1.5% in early trading. Marathon Petroleum (MRO) closed the day with a 2.3% gain. Meanwhile, smaller regional players such as PRAH and financial services provider WU saw muted movements, indicating market focus remains on integrated oil and retail fuel operators. The combination of lower fuel costs and resilient retail earnings suggests a recalibration in the energy retail landscape. Consumers benefit from reduced transportation expenses, while companies are adapting to thinner margins through operational efficiency and ancillary revenue streams.