Diesel under $2?! Quite possible in just days…

That’s right- you folks with the diesel trucks may FINALLY get to see diesel under $2 again, something maybe you thought (and I) that you wouldn’t see again in your lifetime!

The Pilot station in Burns Harbor, Indiana (about a 1.5-2 hour drive from Grand Rapids) is currently selling diesel at $2.01. Now, you definitely would not drive down there just to get fuel, but if you’re taking a trip to Chicago, fill up there.

I wonder when and if UPS will EVER give up their fuel surcharges now that diesel prices have come down. I highly doubt it, I’m sure they love the extra income it brings!

I don’t see Midwest prices going up anytime soon, in fact- I see a Chicago Discount building in. Midwest PADD storage was at 52.5 million barrels yesterday in the DOE’s weekly report- a GREAT number to be sitting at. Refiners will start having to sell that winter blend fuel at discounted prices once Summer comes closer…

Midwest prices should fall into the $1.70’s. I’ll be watching the market closely, a price hike may happen sooner rather than later.

I’ll be taking vacation to sunny Florida next week, so posting may be lacking.

Patrick

3 Comments

Add a Comment
  1. “I don’t see Midwest prices going up anytime soon”

    FWIW, this morning, SSA spiked to $1.959/gal. in the Twin Cities.

  2. Fuel surcharges are being used by the railroads to bolster their bottom lines. Cheap easy profits that need no infrastructure updates, just tack on the magic numbers and force the customer to pay it rather fuel has dropped or not.
    Fascinating way to do business isn’t it? Then again what are the alternatives for shippers of mega size objects and products? NOTHING and they know it.
    They are using the Maddoff Business plan and they have no shame.
    Dano

  3. I started tracking retail diesel prices on December 1. Using the Speedway on Lake Michigan Drive, the prices have been $2.79 (12/1-12/5), $2.74 (12/6-9), $2.54 (12/10-12/25), $2.40 (12/26-1/7), and $2.35 since 1/8. You start to think the price will always be $2.35, so diesel under $2 will be a surprise to me. However, since I don’t have a mathematical model for diesel prices yet, I’ll just keep watching.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please leave these two fields as-is:

Protected by Invisible Defender. Showed 403 to 1,651,754 bad guys.

 

TheGasGame.com (c) 2017 Frontier Theme