Wednesday, February 26, 2014, 6:30PM: Although I am still perplexed about what happened last week, I have some clarity about what will happen tomorrow. Last Thursday, on Grand Rapids Gas Buddy, there were postings of several stations at a new price of $3.65. Then, a few hours later, those postings were gone. Instead, on Saturday morning, we got our third Saturday hike in a row, and of course the new price was … $3.65. Retail prices have been following higher wholesale prices, which we usually see in February, particularly in regions influenced by Chicago. Well, we have a new high for 2014 in wholesale prices tonight, and I calculate the cost to retailers to be $3.59 a gallon. Since prices in and near Grand Rapids are in the $3.44-$3.65 range, we are looking at price hike on Thursday. Estimated new price: $3.75. –Ed A.
Month: February 2014
Comment on the February 5 prediction: I predicted a Thursday hike, but we ended up with a rare Saturday hike, to $3.49. So, I was WRONG.
Thursday, February 20, 2014, 2:30PM: It has been a difficult game to play this month. We’ve had two rare Saturday hikes (Feb. 8 and 15) due to jumps in the wholesale market on Fridays, while competition in the retail sector has been knocking those hikes back down. Last night, I calculated a price to retailers in Michigan of about $3.40, but prices are all over the place this morning, with a low of $3.32 on Alpine Avenue. As I write this post, there are reports on GasBuddy of a hike to $3.65 at some Speedway’s in town, although the Speedway web site doesn’t show it to be the case. If that is correct, that’s a bit of reach compared to recent price hikes, and that price may not hold up very long.
So, fill up for $3.40 if you can, but I don’t have anything to predict. I do have a reading assignment though: Michigan drivers pay some of the highest taxes in the region on gasoline. -Ed A.
Comment on the January 28 prediction: Right on the money, as prices rose last Thursday to $3.39. CORRECT.
Wednesday, February 5, 2014, 7:45PM: Wholesale prices are right where they were at the last price hike, but retail prices have fallen from $3.39 to as low as $3.13 in Cedar Springs. Seems like it is Thursday Price Hike Time, back to around $3.39 I predict. — Ed A.