For posterity, let me document that at 4PM today in Standale, Citgo was still at $1.44, while Meijer had matched Speedway’s morning price hike and was selling gas for $1.59, while the Marathon had matched Speedway’s afternoon price hike and had gas at $1.75. This evening, checking prices on the Internet, it appears that Meijer is still at $1.59, while BP and some others have also raised their price to $1.75.
So, what happened here? The first price hike made sense because wholesale prices had started rising earlier this week, and if they had raised prices this morning to $1.65-$1.69, it would have even fit my mathematical model. On NYMEX today, prices did soar, and wholesale prices there went up 10 cents a gallon, but usually it takes a least a day for something like that to affect retail prices. I guess by this afternoon, someone had CNBC on and saw the NYMEX price up and sent out the second price hike e-mail of the day.
Is this really the best way to run a business?