Pump, wholesale and spot

LiveFuelPrice

litres
Regular gasoline
Surrey, BC
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Next 7 days

Recent pump Projection Likely range
For the curious Open the full analysis
Show the model and the mathHide the deep dive

Where your pump price comes from

Every litre at the pump is crude oil, plus the refining margin, plus distribution and marketing, plus tax. Crude is usually the biggest single piece. Taxes are the most predictable piece, because they are set by law rather than by the market.

The forecast model

A short horizon pump forecast works because retail lags wholesale by roughly one to two weeks. We fit an error correction model: how fast does the pump close the gap to where wholesale says it should be, and how much of this week and last week's wholesale move passes through.

How fast prices react

Pumps tend to rise faster than they fall, the so called rockets and feathers effect. We fit a separate pass through for wholesale increases and decreases to measure it.

If crude moves, where does the pump go next week

We map a change in the Brent crude price through the fitted crude to wholesale to retail chain. This is a what if, not a crude forecast, since no one can reliably predict oil.

History: pump versus wholesale

The pump line trails the wholesale line. That gap, and how quickly it closes, is the whole basis of the short term forecast.

Pump Wholesale

How we built this, in plain terms

The simple verdict and the deep dive share one engine. We take the recent weekly pump series for your city, the matching wholesale series, and the Brent crude series. We compute a long run baseline gap retail minus wholesale that captures the usual margin and tax load. Each week the pump moves by part of this week's wholesale change, part of last week's, and a correction back toward the baseline gap. We estimate those weights by ordinary least squares, then push one week forward using a wholesale input implied by recent futures movement. The three day verdict is the near part of that weekly path, shown with a band of one standard error of the model's past misses. Taxes are added as known constants, not extrapolated, which is why a tax change like the September 7 excise return is handled as a fixed step rather than a guess. For your real site, replace the seed data with the fuel.json your PHP cron writes, and the same code runs on live numbers.