If there’s a price hike this week, it would be up to $1.53 or so. The 0-margin price is about $1.30. Since prices in town are currently ranging from $1.41 to $1.53, there is a room for prices to fall, but Mr. Big could also order up a price hike. So, at this moment, no prediction. The magic 8-ball might get clearer by Wednesday morning.
Month: November 2003
Wholesale prices are just where they were a week ago. Since retail prices have dropped just a bit since Thursday, I say we will enjoy a holiday week without a price hike. See you next week. There was no price hike near Thanksgiving: CORRECT!
Wholesale prices continue to rise — the price of a barrel of oil is up 10% since the beginning of the month. Meanwhile, retail prices of gas are down to $1.44 in the area, so I am expecting another price hike later this week, to around $1.58. A rare perfecto — prices rose to $1.58 on Thursday. CORRECT.
I’m convinced that the Chicago Summer Premium is over, but what is up with the wholesale price of a barrel of oil? That jump last week from $28.47 to almost $31 will show up quickly at the gas pumps. So, sadly, I see a price hike this week, to something over $1.50. Just in time for payday, prices rose last Thursday to $1.53. CORRECT prediction.
Regular readers of my postings know that I have been struggling with whether or not to continue to factor in the difference between Chicago and New York wholesale prices that occur every summer. (I can get NY wholesale prices over the Internet, but not Chicago’s.) Last week’s price hike indicates that the price difference continues. Or it could be some Halloween game played by the retailers. Looking at my records, in 2002 we had a price hike at Halloween, and then no price hikes in November, as it appeared the Chicago Summer Premium finally went away at the end of the first week of November. Let’s assume something similar will occur with the CSP, and given the fact that wholesale prices have been creeping lower, I predict no price hike this week, and maybe prices in the $1.30’s by next week. Both predictions were CORRECT, as prices dropped significantly last week and at the beginning of this week.