Readers of my postings know I have argued strongly against the idea that large gasoline retailers use low prices to drive out competition. My primary example has been Speedway, a large gasoline retailer, who typical takes the lead on price hike days. So, the report in this weekend’s GR Press about the gas price war in Fremont caught my attention. According to this report, Wal-Mart was selling gas this past Friday at $1.64 a gallon (compare to $2.03 in Grand Rapids), definitely below cost, and the other retailers in town, including Speedway, have had to compete. Also, it seems that the past few price hikes in Grand Rapids have not been matched by all retailers, leading to significant price differences in town. I am beginning to suspect that the next several weeks will be volatile (both up and down) when it comes to gas prices. As for this week, I can buy gas in Standale for $1.91 and CNBC has oil prices up more than a buck this morning. This means wholesale gas prices will be up 3 to 5 cents today, leading to a 20-cent margin price of about $2.07, and I predict that will be the new price on Thursday (plus or minus a few cents, and maybe Wednesday, but never Friday). $2.07 was the new price on Wednesday in most places, Thursday for some — CORRECT!
- Looks like we are heading back to $3.09 ... https://t.co/kQz8w0zy34 09:24:17 PM August 06, 2018 from Twitter Web Client
- How did we get to $2.69? Why will we go back to $2.99 soon? https://t.co/W7jbVBHx73 09:31:46 AM July 22, 2018 from Twitter Web Client
- RT @TomKloza: Trust me. This week's US crude oil inventory build (+1.2-million bbl) is a head fake. High runs and high exports will lead to… 09:12:23 AM July 07, 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