Tricky Thursday

Wednesday, February 25, 2015, 9:00PM:  Wholesale prices jumped up 10 cents a gallon today.  I don’t know why, but that pushes us back into price-hike territory.  Don’t be surprised to see $2.49 on Thursday. –Ed A.

Updated: February 25, 2015 — 9:02 pm

30 Comments

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  1. Ed A..
    My observation is that funny things (bigger jumps or dips) always seem to happen whenever reference pricing for spot product rolls to the next month’s (April in this case) NYMEX RBOB future.

  2. Well you called it Ed, 2.499 at Greedways around Kzoo

  3. 9% hike in crude (44 to 49.17) and 25% rise in gasoline prices (1.87 to 2.49).

    Business as usual..

  4. I really don’t want to jinx this, but so far, in Fort Wayne, I’m not seeing a hike anywhere yet. I wonder if they are saving it for Saturday, to catch us off guard.

  5. independent retailer

    Turbo, just a quick search on GasBuddy and I get this. One station at 2.13, 14% increase. Grand Rapids Mi average 2.29, 8% increase. I have have reached my limit of drama. I think it’s time to remove this site from my bookmarks.

  6. I think Turbo is referring to the LOWEST that oil got, which was $44, and it’s current price, along with the LOWEST the gasoline got, along with current retail.
    I don’t believe he is referring to just this spike.
    When we hit $2.499 tomorrow in Ohio, our numbers will be about the same. 1/8/15 or so, we hit an average of $1.85 in sw Ohio. $2.499 will actually represent a 35% increase, while oil is only up about $4, less than 10%.
    The issue is that wholesale prices have gone up about 50 cents/gallon, or about 40-50%.
    The increases at the pump are, for the most part, warranted, with the increase in wholesale. The part that sticks in our craw, is the 40% increase in spot has coincided with only a 9% increase in crude oil.
    We are well aware that the two are not directly connected, but for spot to go up at a rate 10x that of oil reeks of manipulation.

  7. Spot prices are up at a 4x rate to oil, not 10x. Sorry. Got ahead of myself.

  8. WTI Crude was down 5.5% today. Would not surprise me if Spot goes up 5.5% then.

    I believe its time to fill up my Fit!

  9. Exactly right, Chris. Wondered about the same thing myself.

  10. Thanks, Chris, I was referring to the totals, as you pointed out.

    Of course, even a 1:1 hike rate between crude and spot would be laughable since according to the scriptures only about 66% of gasoline price is crude. The rest is refining, marketing, distribution, and profit. And as we all know, it’s a lot more expensive to refine and transport and market $3/gallon gasoline than $2/gallon gasoline 🙂

    I filled up the Fit today as well. But it all boils down to not trusting businesses, period.

  11. “I have have reached my limit of drama. I think it’s time to remove this site from my bookmarks.”

    Yeah, I spend a lot less time here too for the same reasons, until I really need gas.

    “But it all boils down to not trusting businesses, period.”

    And you say you’re not paranoid, question mark.

  12. Drama? I would call it more like justified venting at the best. But hey that’s me, I have thick skin, it is the net after all. I agree with Turbo Chris and others. Oil goes back up just 4 to 5 dollars a barrel and that = a 60 to 70 cent jump at the pump? Hang on to your seats then if oil hits the 100 dollar mark because at this rate it would top 6 bucks at the pump. Thank God for Pilot here in Daleville Indiana keeping Greedway (yes I used the G-word) honest (I say that lightly). Always funny to see Greedway going up 30 cents only to see Pilot go up just a dime. Mere hours later Greedway goes back down 20 cents. Now someone please tell me Greedway is now taking a loss. They aren’t…they are just making 20 cents a gallon less profit. Thank you Pilot!

  13. Ren, I’m 55 years old and let’s just say there are very few businesses I “trust”.

    There are businesses and market sectors that make the gasoline market look like the Boy Scouts by comparison.

    Look up “flat rate plumbers” and you’ll see what I mean…

  14. SW Ohio, SE Indiana and Kentucky spiking ti $2.499 right now.

  15. ChrisDG74: I called the Saturday spike in comment #4 above. Saturdays are great to catch people off their guard.

  16. Many places in Carmel are in the 2.30 range so not much of an epic spike there. Lots of places under 2.19 tho in more friendly zones so WHAM!

  17. $2.49 in Delaware County Indiana, up from $2.24. Might we see the spike next Saturday to $2.69?? Seems as though we’re on a Saturday roll now

  18. I said $3.00 by Easter. Maybe I better revise my guess upward.

  19. Nah. It’ll take TWO whole weeks to get to $2.699.
    The spike prices seem to be 10 cents higher each time.

  20. Did I miss something. I see this morning that RBOB Gas is running at 192.00 today. Late last week it was in the low 170’s. We looking at 2.79 or higher this week?

  21. Contact expiration. Mike.
    Oil is lower, rbob higher.
    Summer blend. Yay!

  22. Strange how things are always the “Perfect Storm”
    I read a news piece on http://www.wane.com that says that we will enjoy the “perfect storm” (words not used in article) of issues for the next 6 to 8 weeks. Gotta love it. I’m waiting with bated breath for what the next ingredients will be for the next Perfect Storm.

  23. Yeah, we’ll see $2.999 by Easter(maybe $2.899).
    Back to $3.50 by Memorial Day.
    Welp, it was great while it lasted.

  24. Yeah, $3.50 for gas, and oil still below $60 a barrel. Will be interesting to see what emergency they will invent for the disconnect between the (2) this time. I will admit they have the best “think tanks” money can buy. As soon as one of their reasons for rising gas prices doesn’t prove effective anymore, they invent another reason..

  25. I noticed that too. RBOB at $1.92 and that is with a 5 cent decrease this morning to boot. WTF??? If Chicago Spot is anywhere close to that we may see a price hike that would make $2.49 downright cheap.

  26. Mike…
    CBOB (Chicago) spot prices were nearly 30&cent below April RBOB futures next week. THAT’s an unusual;y large discount for March. SO..things could be worse.

  27. sorry…I meant last Friday, not next week;

  28. Spot prices down more than 9 cents today. BP Whiting IN refinery is fully back on line.

  29. Chicago RBOB spot dropped 27 cents this week. CBOB spot 24 or 25 cents. The discount VS NYMEX RBOB futures is approaching 50 cents…unheard of in the spring. The area must be awash with gas in storage. Should keep price hikes at bay for a while longer.

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