More price cuts coming this week
Wednesday 06 Jun 2007 | Posted By Ed Aboufadel | Predictions
Comment on last week’s post:Â Absolutely CORRECT, as there was no hike last week, and prices have fallen as low as $3.24 around town as of June 6.
Wednesday, June 6, 2007, 2:00 PM: It has been nice to see NYMEX prices drop the past week, “Speedway States” wholesale prices drop (the best that I can tell), and retail price drop. Will this continue? “Yes!”, I predict. Indications are that wholesale prices have dropped 40 cents since topping out in mid-May, when we hiked to $3.65, so that puts us in a $3.05-$3.25 range before the retailers get itchy about doing a price re-set. I think we’ll certainly see $3.19 somewhere by the weekend. $3.09 by Monday may be asking too much, though. (A commenter named “Retailer” on this site is more optimistic — suggesting $2.99!)
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Rack prices went down another 7 cents last night. I would be shocked if there aren’t a few stations at $2.999 this weekend. That is around an 8 cent markup with today’s cost.
If you had an empty tank today and got a full delivery, it would be very tempting to drop. But, it’s also tempting to make extra profit while other stations are stuck waiting for a cheaper delivery.