Comment on the March 19 prediction: With the price hike on Saturday to $3.79, this one turned out to be WRONG.
Wednesday, March 26, 2014, 7:15AM: I am still scratching my head about Saturday’s price re-set to $3.79. Here was my calculation on Saturday morning: estimated wholesale price: $2.71. Add in taxes and transportation, and the price to retailers was $3.39. Typically, when a price hike occurs, the new price is about 20 cents higher than that, which gives us $3.59. Now, retail prices on Friday night were about $3.59, so I would expect no hike. Instead, $3.79 was 40 cents higher than the price to retailers. That’s just weird. Now, this morning, you can buy gas for $3.59 at the Marathon at Burton and Kalamazoo, but there are still a lot of places in the upper $3.70′s. Unless we have just seen a dramatic change in retail gas pricing behavior, it is an easy prediction that gas prices will continue to fall for the next several days. –EA