Comment on the May 18 prediction: Prices continued falling for a week, into the $3.70s, so that prediction was CORRECT.
Thursday, May 26, 2011, 1:00PM: Unfortunately, I didn’t have anything to say before the hike to $3.99 yesterday. There is something going on with floods and refineries and the stock market that is causing wholesale prices to bounce around, but I had no clear prediction to make. So, for Memorial Day weekend, we are just about at $4 a gallon. Here is your reading for the weekend: musings about $4 gas from Greg Beato. An excerpt:
“Indeed, while the gas that cost 36 cents per gallon in 1970 would only cost $2 per gallon today, the average fuel economy for cars in that era was approximately 13.5 miles per gallon. In contrast, a 2011 Ford Fiesta gets 28 miles per gallon in the city and 37 miles per gallon on the highway — so until gas prices top $4 per gallon, Fiesta drivers are actually paying less per mile for gas than the drivers of the 1970s did. And they’re not paying a premium to achieve such efficiencies — the Fiesta starts at $13,320 (that’s just $2312.72 in 1970 dollars).”