Comment on Monday’s posting: A second WRONG in a row, as prices re-set on Wednesday to $3.69 in the Grand Rapids area.
Thursday, August 18, 2011, 1:50PM: Yesterday’s price hike was not related to wholesale spike, just someone at Headquarters wanting to get those margins back up again. As I noted the other day, it looks like we are seeing more aggressive pricing this month to increase margins. Sorry for the WRONG prediction. Of course, the day after the hike, we have a harsh decline in the stock market, which means wholesale prices are also falling. At the moment, the Gasoline ETF with symbol UGA is down 3%, so that would translate to about a 10 cent drop in wholesale prices. So, retail prices will be down a dime tomorrow, right? Maybe — I see we are $3.61 in Jenison this afternoon. The point is there is now pressure on retail prices to go lower the next few days.