Home

How refinery fuel indexes have varied

Jan. 6, 1997

Itemized refining cost indexes [ .pdf file] Refinery fuels costs have endured a steady incline since 1993, except for a period in 1993. As shown in the accompanying table, these increases in cost have occurred for residual fuel oil costs in three of the five PADD districts. PADD 1 remained the same overall while PADD 4 incurred a drop in price over the period. The cost for natural gas for refinery usage also dropped steadily during the 3-year study.

Gary Farrar
Contributing Editor

Itemized refining cost indexes [ .pdf file]

Refinery fuels costs have endured a steady incline since 1993, except for a period in 1993. As shown in the accompanying table, these increases in cost have occurred for residual fuel oil costs in three of the five PADD districts.

PADD 1 remained the same overall while PADD 4 incurred a drop in price over the period.

The cost for natural gas for refinery usage also dropped steadily during the 3-year study.

These conclusions are based on costs of an average refinery fuel consisting of 1 bbl each of PADD Districts 1-5 and an average U.S. cost of 4.4 MMscf natural gas (a 1 bbl equivalent on a BTU content basis). Raw residual fuel oil and natural gas prices come from publications put out by the U.S. Department of Labor.

Biggest variations occurred in PADDs 2, 3, and 5. PADD 4 dropped in yearly average from 539.5 to 505.3.

PADD 1's 3-year averages started with 542.1, increased to 690.1, and finished with 551.3.

All indexes shown are based on 1956 = 100, the basis of the Nelson-Farrar Operating Index for an average U.S. refinery.