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US Retail Fuel Margins Drop 5 Cents in Q2 Despite June Rebound, TPH Energy Says

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TPH Energy's US retail fuel margin indicator fell 5 cents per gallon over the quarter to 39 cents/gal in Q2 2026, the weakest level in four years, the firm said in a Wednesday note.

The indicator recovered to 47 cents/gal in June from 29 cents/gal in May as crude prices eased. However, the quarterly average remained lower because pump prices failed to keep pace with higher crude costs and refining margins, TPH said.

Retail gasoline prices increased $1.04/gal over the quarter, while crude costs rose 49 cents/gal and refining margins expanded 69 cents/gal, pressuring overall retail margins, the firm said.

Regional trends diverged during the quarter, with TPH's PADD 4 and PADD 5 indicators rising 13 cents/gal and 9 cents/gal, respectively. However, PADD 3 margins fell 6 cents/gal, while PADD 1 and PADD 2 declined 12 cents/gal and 13 cents/gal, the firm said.

TPH said Par Pacific Holdings (PARR) has the greatest exposure to retail margin trends in its coverage because of its PADD 5 operations, including fuel stations in Hawaii and Washington, where stronger regional margins could provide support.

The firm added that retail margin trends can also influence wholesale operations at refiners, including Phillips 66 (PSX) and HF Sinclair (DINO).

Price: $57.47, Change: $+1.39, Percent Change: +2.48%

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