Sunday, December 11, 2011, 3:30PM: In my last post, I noted the following: “It appears that Speedway is trying to improve their margins. They have not been successful in the past trying to do this.” That appears to be the case again. First, for more than a decade, every attempt to push margins higher has been stopped by the competition who start lowering prices very soon after the price hike in order to bring people in to buy more pop and chips. Second, the hike occurred after a wholesale jump of 13 cents in a week, and then, of course, wholesale prices dropped at least a dime right after they raised retail prices. The upshot is that at the moment, my calculation is that prices need to get down to $3.15 or so before another price hike happens. This can change on Monday, of course, after the markets open and wholesale prices change, but if you are wondering how we went from $3.45 on Tuesday to $3.19 in Kentwood this afternoon, I’ve given you two reasons. No prediction right now about what happens this coming week.
Why We Are Here
Ed A.: ab...@gvsu.edu
Craig P.: cr...@paull.net
Tim S.: ts...@gmail.com
Bill E.: pa...@yahoo.com
The name of the site is based off an essay Ed wrote for the Grand Rapids Press titled "The Gas Game". The current website was established later by Patrick DeHaan after he and Ed predicted gas price hikes on GasBuddy's website GrandRapidsGasPrices.com, as well as Ed’s personal web page.
Note: To be precise, add 9/10 of a cent to all prices described on this web page.
AXXIS capacity Chicago Premium competition contracts demand diesel DOE dollar expansion fire fudge factor futures gasoline gas prices gouging Hurricane indiana inventories maintenance margin market no prediction NYMEX Ohio oil PADD prediction price hike prices fall production profit refineries refinery refinery utilization report retailer shutdown Speedway stockpiles storage tv utilization wholesale prices WOOD