Independent refiner Sunoco Inc. (SUN) said gasoline demand has been flat from year-earlier levels.

"Demand has been flat from last year at this time," Chief Executive Lynn Elsenhans told industry analysts on a call following the company's first-quarter earnings release.

When pressed by analysts, Sunoco executives didn't rule out the possibility of gasoline demand gains during the normal summer driving season. However, Elsenhans emphasized that such gains haven't yet been seen.

Sunoco has profited despite current tepid demand for gasoline.

The company's core refining and supply business swung to a profit of $23 million from a year-earlier loss of $123 million, due to lower oil costs and higher realized margins, which was partially offset by lower production volumes. Profit at its retail operations slumped 77% to $6 million.

The price savings reflected Sunoco's efforts to run the cheapest grades of crude at its refineries.

Especially at times of weak demand, when refineries are running at lower rates, Sunoco is increasingly able to run cheaper grades of crude. Sunoco has shifted away from running larger volumes of expensive Nigerian crude, instead favoring less expensive mixes.

The company's plants aren't able to run the cheapest possible grades of crude at full rates. However, Sunoco has more flexibility when its units run at lower rates.

-By Jessica Resnick-Ault, Dow Jones Newswires; 201-938-4435; jessica.resnick-ault@dowjones.com