WASHINGTON June 14, 2006 – U.S. motorists appear to be doing what they can to cut back on their fuel use to offset the impact of higher pump prices as May gasoline deliveries, a proxy for demand, plunged 3.3 percent from May 2005 levels amid a 35 percent rise in retail prices, data compiled by the American Petroleum Institute shows.
In its Monthly Statistical Report covering May 2006, API also noted that diesel deliveries rose 1.2 percent in May compared to year earlier levels and included a significant amount – about 400,000 barrels per day - of ultra-low sulfur diesel for the first time. Those numbers should continue to rise as from June 1 refiners and importers are required by federal law to produce or import enough of this cleaner fuel to provide 80 percent of on-highway diesel.
“A tremendous amount of investment, planning, and hard work is going into being able to provide this cleaner fuel, and we are just beginning to see the results,” said Ron Planting, API’s manager of statistical information and analysis.
On the supply side, with all refineries idled by last year’s hurricanes now operating, albeit not all at normal rates, the national capacity utilization rate rose to 91.7 percent in May, the highest level since August 2005 before Hurricanes Katrina and Rita pounded the Gulf Coast. Though refinery capacity lagged May 2005’s 94.1 percent, strong product imports have filled any supply gaps. Bolstered by a record 1.5 million barrel per day of gasoline imports, total U.S. crude and refined products imports hit a new high in May of 14.3 million barrels per day.
Reflecting the increased refinery inputs, crude oil inventories dipped slightly to end the month less than 3 million barrels below end-April levels but remained 9 percent above the past five-year average for May. Stocks of gasoline, distillate, jet fuel and residual fuel oil were all at or above the five-year average level for May.
News media contact: Karen Matusic, (202) 682-8118