Comment on the May 4 prediction: Prices dropped considerably, as predicted, down into the $3.50’s, so that was CORRECT.
Tuesday, May 15, 2012, 2:15PM: But I missed the price hike that has been in progress the last 24 hours. Updating my spreadsheet over the weekend, I saw a chance of a price hike due to an 18-cent rise in wholesale prices from May 7 to May 11, but things were so out-of-whack at $3.99, and there were indications that this week would be weak for the stock market, so I decided not to post and not to predict a price hike. By noon Monday, when I was driving around and still saw mostly numbers in the $3.60’s, I thought I made the right decision, but by the end of the day, it was clear I was WRONG. This is another one of those screwy hikes, though, that not all stations embrace, and I bought gas for $3.71 this morning at the Meijer in Standale. (They are now up to $3.87.) Retailers are paying about $3.67 for gas today, and they’ll go down to 10 cents below that before a hike, so that’s why there wasn’t a rush to re-set to $3.89. $3.89 represents a price restoration with a higher margin than usual, but then, so did the last few hikes.
Looking ahead, you should seek out places where the price hike didn’t hold. Will Speedway’s attempt to raise margins with bigger price re-sets continue and be successful? We’ll see.