4. INVENTORIES

Our inventory amounts were as follows at the dates indicated (in thousands):

	June 30,		December 31,
	2013		2012

Refined petroleum products (1)	$	180,634	$	246,918
Materials and supplies	14,242		12,245
Total inventories	$	194,876	$	259,163

(1) Ending inventory was 62.4 million and 80.9 million gallons of refined petroleum products at June 30, 2013 and December 31, 2012, respectively.

At June 30, 2013 and December 31, 2012, approximately 74% and 88% of our refined petroleum products inventory volumes were hedged, respectively. Because we generally designate inventory as a hedged item upon purchase, hedged inventory is valued at current market prices with the change in value of the inventory reflected in our unaudited condensed consolidated statements of operations. Inventory not accounted for as a fair value hedge is accounted for at the lower of cost or market using the weighted average cost method.