Last Thursday, we saw the another situation where many stations, led by Speedway, raised their prices to $1.76, while others only went up to $1.69. In fact, as of yesterday, prices were back below $1.70 on Lake Michigan Drive. So what’s going on here? When I started studying the situation a few years ago, I used some algebra to conclude that the purpose of a price hike was to get the gas stations’ margins back to 20 cents. My theory is that some stations figure it is about time to get that margin up to 25 cents, but some competitors aren’t going along. So, I expect this tug of war will continue for a while until either the 25-cent margin sticks, or Speedway and friends give up. As for this week, future prices took another jump on Friday, making the 20-cent margin price $1.75. So, the ingredients are there to raise prices to as much as $1.80 on Thursday. That’s my prediction. And, if it happens, then you’ll understandably start hearing the howls in the GR Press. That prediction was CORRECT, as prices rose to $1.79. Then, in a rush on Tuesday, I posted a prediction on GrandRapidsGasPrices.com that there would be no price hike during the last week of February. That was dead WRONG as prices rose (again) to $1.79 on February 26, and I am stuck with less than half a tank.
- You snooze, you lose ... comments on Saturday's rare price hike ... https://t.co/FD1j34Kh4Y 09:35:10 AM March 18, 2018 from Twitter Web Client
- Fill up tonight or tomorrow ... https://t.co/qEPCRJ1FVB 04:17:26 PM March 06, 2018 from Twitter Web Client
- Go to Lowell. Buy gas for $2.20. Win the Gas Game! Hike expected this week: https://t.co/mYZd76hrQj 09:25:27 PM February 19, 2018 from Twitter Web Client
Why We Are Here
Ed A.: ab...@gvsu.edu
Craig P.: cr...@paull.net
Tim S.: ts...@gmail.com
Bill E.: pa...@yahoo.com
The name of the site is based off an essay Ed wrote for the Grand Rapids Press titled "The Gas Game". The current website was established later by Patrick DeHaan after he and Ed predicted gas price hikes on GasBuddy's website GrandRapidsGasPrices.com, as well as Ed’s personal web page.
Note: To be precise, add 9/10 of a cent to all prices described on this web page.
AXXIS capacity Chicago Premium competition contracts demand diesel DOE dollar expansion fire fudge factor futures gasoline gas prices gouging Hurricane indiana inventories maintenance margin market no prediction NYMEX Ohio oil PADD prediction price hike prices fall production profit refineries refinery refinery utilization report retailer shutdown Speedway stockpiles storage tv utilization wholesale prices WOOD