Just seeing Ed’s post made me think back to the prediction earlier in the year about when gas will hit $4 a gallon. I said with haste that would occur on September 16, 2008, as we’ll be in the middle of Hurricane season. With any luck or miracles, maybe we won’t have as active of a season again this year.
Anyway, the Dollar is slowly gaining strength, the European Central bank is poised to lower its own interest rates, therefore losing precious value of the Euro… how long will it last?
The Dollar has been on the up side a week or so. Economists believe if any recession does exist it would be a shallow and fast moving event.
Anyway, I don’t know that $3.75 is the magical number, given that this year’s run-up in prices has been significantly higher, but I still debate myself as to whether we’ll see $4 a gallon this Spring.
Comment on Monday’s posting:Â The hike was to $3.75 on Tuesday, which is close enough to be called CORRECT.
Wednesday, April 30, 2008, 10:00 AM:Â As readers know, my predictions are short-term, based on the recent wholesale price of gasoline as approximated by NYMEX and AXXIS prices that are posted on public web sites.Â Today, I am going to go with my instincts, based on my experience watching markets in general the past twelve years.Â I think $3.75 will be the high for the retail price for a while, maybe even for the year.Â Other commodities (e.g. gold, soy beans) have stopped going up and started going down, and it feels like it is time for the struggling economy to start affecting the price of energy.
Of course, “feels” is the right word, and I might look foolish in a few weeks with this prediction.Â On the other hand, we usually get a high price in late March followed by dropping prices for a few months, and with winter hanging on this year until May, perhaps so has rising prices.
Comment on the April 20 prediction: Prices rose last Tuesday to $3.69, so the prediction was CORRECT.
Monday, April 28, 2008, 4:10 PM: Despite the record-high gas price, there is some evidence that the retailers are actually taking it easy on us, compared to what they are paying. Still, wholesale prices look like they are up about a dime the past week, which means a hike to $3.79 could be coming tomorrow or Wednesday. I don’t have the sense of certainty that I often have with predictions, but I still will make this an official prediction. Since I’m almost on empty, I am going to fill up tonight.
My Indiana benchmark has dropped four cents since my last writing, down to $3.69. Is there some reason their wholesale costs are that much higher than Grand Rapids? The station in question in Indiana is definitely a high volume station, so their wholesale costs would be more appropriate to benchmark against compared to a smaller Indiana retailer, but as I said, we still average a good dime and change over their pricing.
Either they will drop again or we’ll see a rise here in the next couple days…
Stay tuned to WOODTV8 tonight at 5 to hear more, as well as WOODAM1300 tomorrow morning as prices continue to break record highs.
Surprisingly, my Indiana benchmark station jumped to $3.73 overnight while we took a hike to $3.69. Routinely we are 10-15 cents higher than they are, is $3.85-$3.89 going to happen anytime soon? Its hard to tell at this point, but keep in mind prices are NOT going to be headed south anytime soon!
Keep an eye out!
Well, I hope you all had your tanks full this morning, there was a 7-day advance notice of this latest hike! I’m actually surprised that it took so long, but there are several reasons they may have waited- including getting rid of remaining winter fuel, etc.
$3.69 is here and don’t look for it to fall too fast either!
Stay tuned here to TheGasGame.com for any news on more price hikes! Be sure to tell a coworker or friends about us too!