Section 9. Energy prices

Monthly Energy Review, May, 2005

Crude Oil. The average price of domestic crude oil at the wellhead was $41.93 per barrel in February 2005, 34 percent above the level of February 2004. The refiner acquisition cost of imported crude oil in February 2005 was $40.15 per barrel, 30 percent higher than the February 2004 level. The average cost of domestic crude oil in February 2005 was $43.89,32 percent more than the February 2004 average.

Motor Gasoline. The national city average retail price of unleaded regular gasoline at all types of stations was $2.07 per gallon in March 2005, 17 percent higher than the price in March 2004. The price of unleaded premium gasoline averaged $2.25 in March 2005, 15 percent higher than the price in March 2004.

Residual Fuel Oil. The average price, excluding taxes, of residual fuel oil sold to end users in February 2005 was 81 cents per gallon, 5 percent higher than the previous month's price and 16 percent higher than the February 2004 average. The average resale price, excluding taxes, of residual fuel oil in February 2005 was 75 cents, 6 percent higher than the January 2005 price and 7 percent higher than the price 1 year earlier.

Jet Fuel. The average price, excluding taxes, of kerosene-type jet fuel sold to end users in February 2005 was $1.38 per gallon, 5 percent higher than the previous month's average price and 36 percent more than the February 2004 average price.

No. 2 Distillate Fuel Oil. The February 2005 national average price, excluding taxes, of heating oil sold to residential customers was $1.84 per gallon, 2 percent higher than the January 2005 price and 29 percent higher than the February 2004 price. The average price of No. 2 fuel oil sold to all end users was $1.41 per gallon in February 2005, 2 percent higher than the January 2005 price and 42 percent higher than the price 1 year earlier.

Electricity. The average retail price of electricity sold to all ultimate consumers in the United States in February 2005 was 7.51 cents per kilowatthour, 4 percent higher than the average price in February 2004. The price of electricity sold to residential consumers in February 2005 averaged 8.72 cents per kilowatthour, 5 percent higher than the February 2004 price. The price of electricity sold to commercial consumers averaged 8.15 cents per kilowatthour in February 2005, 4 percent higher than the February 2004 price. The price of electricity sold to transportation users in February 2005 averaged 7.08 cents per kilowatthour, 13 percent higher than the February 2004 price. The price of electricity sold to industrial users in February 2005 averaged 5.15 cents per kilowatthour, 5 percent higher than the price 1 year earlier.

Natural Gas. The average wellhead price of natural gas for February 2005 was estimated as $5.59 per thousand cubic feet, 9 percent higher than the February 2004 price.

The average price of natural gas delivered to the electric power sector was $6.62 per thousand cubic feet in January 2005, 5 percent higher than the January 2004 price. The average price of natural gas used by residential consumers in February 2005 was $10.90 per thousand cubic feet, 11 percent higher than the February 2004 price. The average price of natural gas used by commercial consumers in February 2005 was $9.90 per thousand cubic feet, 11 percent higher than the February 2004 price. The average price of natural gas used by industrial consumers in February 2005 was $7.09 per thousand cubic feet, 11 percent above the February 2004 price.

Energy Prices

Note 1. The average domestic first purchase price represents the average price at which all domestic crude oil is purchased. Prior to February 1976, the price represented an estimate of the average of posted prices; beginning with February 1976, the price represents an average of actual first purchase prices. The data series was previously called "Actual Domestic Wellhead Price."

Note 2. F.O.B. literally means "Free on Board." It denotes a transaction whereby the seller makes the product available with an agreement on a given port at a given price; it is the responsibility of the buyer to arrange for the transportation and insurance.

Note 3. The landed cost of imported crude oil from selected countries does not represent the total cost of all imported crude. Prior to April 1975, imported crude costs to U.S. company-owned refineries in the Caribbean were not included in the landed cost, and costs of crude oil from countries that export only small amounts to the United States were also excluded. Beginning in April 1975, however, coverage was expanded to include U.S. company-owned refineries in the Caribbean. Landed costs do not include supplemental fees.

Note 4. Beginning with January 1981, refiner acquisition costs of crude oil are from data collected on Energy Information Administration (EIA) Form EIA-14, "Refiners' Monthly Cost Report." Those costs were previously published from data collected on Economic Regulatory Administration (ERA) Form ERA-49, "Domestic Crude Oil Entitlements Program Refiners Monthly Report." Form ERA-49 was discontinued with the decontrol of crude oil on January 28, 1981. Crude oil purchases and costs are defined for Form EIA-14 in accordance with conventions used for Form ERA-49. The respondents for the two forms are also essentially the same. However, due to possible different interpretations of the filing requirements and a different method for handling prior period adjustments, care must be taken when comparing the data collected on the two forms.