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.
- Crazy in Chicago -- fill up again! https://t.co/7qeVfPB32P 08:19:47 PM November 01, 2017 from Twitter Web Client
- Gas price hike: Indiana on Thursday, so Michigan on Monday, right? https://t.co/QJCd7kCHRe 05:06:47 PM October 29, 2017 from Twitter Web Client
- RT @TheGasGame: Not good news ... https://t.co/M4tQOi6xLJ 08:21:45 PM October 24, 2017 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.
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