A spike on the horizon?
4 comments Wednesday, 09-30-09 | Posted By Bill Eby | Predictions
Chicago spot gasoline:
Chicago Spot: $1.78 UP 0.0978
Costs and taxes adjustment: 0.7772
Fair Price: 2.4082
Average Michigan selling price 2.3820
Margin over cost + profit: -0.0262
USA Average: $2.479
Michigan average ( $2.382 ) is $0.097 under USA average
A spike is looming, with a negative margin in my fair price formula. It’s quite possible that the run-up on the markets won’t transfer over to your local rack prices, but I’m 90% sure of a spike tomorrow.
Expect prices anywhere from $2.37-$2.42 in Indiana, 5 cents higher in Michigan, and with the Chicago RBOB only 1 cent over regular, it could be anywhere from 0-5 cents over the Indiana price.
Hi, Bill. Interesting to read your words here, tonight. Last night, your fellow “gas price guru” Patrick was on our WOODTV 8 evening news, predicting gas prices to slide under the $2.00 mark within the next 4-6 weeks. Given that, do you predict your “spike” to be short lived?
Robert,
Interesting things happened since last night’s airing. And this spike is only due to an unreasonable rise in prices today that I expect to be short lived. Prices climbed 9-cents today after traders focused solely on a surprise decrease in gasoline inventories, but if we look at the bigger picture, we see inventories are still MUCH higher than last year. This spike should be short lived.
More “interestings” – Gas today in Lowell (12 miles east of Grand Rapids) is $2.23 at Admiral and Speedway. Gas in Ada (6 miles west of Lowell, 6 miles east of Grand Rapids) is $2.39 at Speedway. And, on 28th St. east, gas is $2.40 something at Sam’s Club. Go figure!!
I don’t know about a short spike. Gas in Plainwell on US-131 & M-89 between Grand Rapids and Kalamazoo is at $2.20 for reg and mid. A few in SE area of Kalamazoo by I-94 are below $2.20 or at least in the mid $2.20s. Others are still “gouging” or it seems overpricing holding at more than $2.35.