Last Wednesday’s price hike indicated a 5-cent premium over New York prices. This all could be Hurricane Ivan-related, but I don’t know. But futures keep rising, which suggests another price hike this week to over $2. Absolutely CORRECT, as prices rose to $2.05 on Thursday.
Month: September 2004
Since Monday, the stars have aligned for a price hike in the next 48 hours. Prices have dropped to $1.77 at certain places, including the Citgo in Standale, while wholesale prices have climbed, probably stoked by fears of Hurricane Ivan hitting the refineries on the Gulf Coast. Expect a new price of $1.94 or higher. A few hours after my posting, $1.99 started to appear around town. You could still get gas for $1.81 on Thursday morning at certain places. CORRECT prediction.
Futures are up today, after being down on Friday, so not much information there. The cheapest gas in town is about $1.80 right now versus a price-restored price of $1.89. So, it seems that if we see some price drops towards $1.70, there will be a price hike on Thursday. If oil and gas futures climb a lot this week, there will also be a price hike on Thursday. On the other hand, if prices stay around $1.80 without the futures going up, then there will be no price hike. There, that covers all my bases. Perhaps it will be easier to see on Wednesday what’s going to happen.
First, a prediction: no price hike this week. Nothing in the futures prices indicates it. Now, on to the article in the September 1 Grand Rapids Press about gas prices. Mark Griffin, president of the Michigan Petroleum Association/Michigan Association of Convenience Stores, is quoted as saying, “The fact is, our members do not set the prices of gasoline.” He goes on to blame “large conglomerates” such as Wal-Mart for selling gasoline below cost and driving out competition. Oh, give me a break! At least here in Grand Rapids, we have seen that it is a large conglomerate called Speedway that usually hikes prices first, and the other large conglomerates match that price hike. Poor little Admiral is usually the one that pulls prices down. I would be more impressed with Griffin’s argument if the next few time Speedway does a price hike, Meijer and Shell didn’t match it at all and kept their prices at or below cost. There has got to be a better argument to convince me that this gas price Stabilization Act makes sense. Right now, it sounds more like a Guaranteed Profit Act. A hike was initiated on Thursday to $1.89, but wasn’t complete until Friday morning. Regardless, I had an empty tank to fill on Friday afternoon. WRONG-O!