Oh, Speedway, my friend, my buddy, my pal, what are you up to? Yesterday’s breakout to $3.09 was the fourth price hike in a week, but this one seems suspect. Did you panic when you read yesterday morning’s report from the Department of Energy? NYMEX traders didn’t, and prices there ended the day pretty much where they started. The averaging of the RU/HB prices has been a good predictor for three months now, and it could understand a hike to $3.02, but $3.09? What’s up with that? I see this morning that a few of your stations are back to $2.99, and I predict prices will be below $3 everwhere in the area by Independence Day. On July 4, prices were ranging from $2.85 to $2.99 just about everywhere, except for some parts of Ada and Wyoming, best I can tell. Perhaps I am being generous, but I am going to score this prediction as CORRECT.
Month: June 2006
GrandRapidsGasBuddy Peg let me know this morning that gas has hiked to 3.09 at local Speedway stations. This rise is mostly unwarranted, because prices on the wholesale market haven’t gone up this much. 2.99 is warranted (sadly), but 3.09 is just too high. Hopefully we’ll see it go back to 2.99 here soon.
Let me remind you that Speedway has hiked 4 times in the last week. First hike to 2.85, then 2.95, then 2.99, now 3.09.
This is ridiculous, and since Speedway has pricing control over the market, I would like to avoid supporting Speedway if at all possible.
Have a good weekend. No beach for me today!
Wholesale prices are up 17 cents in a week, which is why we are back to $3 a gallon, except in Allendale, where it is still $2.84, and in Indiana, where gas is $2.79. In fact, gasoline prices are noticeably higher in Michigan, Wisconsin, and Illinois, versus anywhere else from Montana to Georgia. On the bright side, for the past three months, this is where both wholesale and retail prices have topped out before dropping 20 to 30 cents. However, that’s not a prediction. A good thing it wasn’t a prediction, because prices rose to $3.09 on Wednesday.
GrandRapidsGasPrice buddy Peg has just informed me that prices in Ada hit 2.94. I checked Greedway’s website to see the confirmation. Prices on the wholesale market were up yesterday, but I think a nickle hike to 2.89 would have been the better solution.
Get gas before everyone goes to 2.95!
Enjoy the weekend
We’ve had a couple up days in the futures market, so don’t expect prices to drop much over the weekend. Looking ahead into July, the past few years, there was a point in mid-July where prices started rising week-to-week through Labor Day. There’s no reason to think it will be different this year. “Don’t expect prices to drop much …” — yeah, right. We had a price hike later that day to $2.95, and then they tacked on four more cents on Monday the 26th.
Good morning, and welcome to the first day of summer. It appears that wholesale prices have been pretty constant the past several days, and we are dipping down towards the 0-cent margin price, so a price hike should be in the works for today or tomorrow. Using the HU/RB average to estimate the wholesale price, I would peg the new price to be in the neighborhood of $2.83. Two hours after my prediction, $2.85 started showing up everywhere. So the prediction was CORRECT, but was it useful?