Price hike consistent with calculations

Wednesday, September 27, 9:45 AM:  I was tempted to post a price-hike prediction on Sunday night, and during the day on Monday, but the severe (and welcome) drop in prices the past two months, combined with some strange behavior of the RB futures contract, have given me pause.  However, the hike to $2.25 yesterday pretty much matches the 20-cent margin price I calculate.

It is very interesting to see, though, that once again the price hike was not embraced by all stations in the area.  For instance, prices are $2.12 this morning on Cascade Rd., and $2.04 in Allendale!  I recall something like this happening in the past:  there was a significant drop in wholesale prices, then those prices stabilized, but price hikes didn’t last because it seemed that some retailers were trying to clear their books of the expensive gas they bought a few weeks earlier.

I would not be surprised if there is a second attempt to re-set prices to $2.25 at all stations either Thursday or Friday.  If not this week, then definitely next week, as $2.04 is pretty much at the 0-margin price.

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