Spidey-sense says “re-set to near $3.19 coming”
Tuesday 12 Jun 2007 | Posted By Ed Aboufadel | Predictions
Comment on last week’s prediction:Â Prices did keep falling, down to $3.02 on Tuesday the 12th, so the prediction was CORRECT.
Tuesday, June 12, 2007, 2:45 PM: In past years, prices tended to go lower in June, with a minimal number of price hikes. This year, we are thankfully seeing the same, but the month isn’t over yet. With wholesale prices in the Midwest at about $2.37, that corresponds to a 20-cent margin price close to $3.17. We have a good number of stations under $3.10 right now, so I sense a price re-set coming, in the $3.15-$3.19 range. For a few stations, that will mean lowering their prices, but I predict this re-set will occur by the end of the week.
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With today’s cost $2.999 is a 14 cent markup, which is what most of us hope to average. So, $3.05 is the actual 20 cent markup price.
Unless the DOE report is bad today, I would assume most of the station South of Mt. Pleasant will be under $3 by the end of the week.
Just like the fist time we went over $3, Speedway won’t go over it until the have no choice. That means, we would need to have 10-15 cents worth of increases. The DOE report would have to be really bad to make that happen this week.