It’s The Most Wonderful Time of the Year … to Buy Gas

Sunday, December 3, 2017, 11:00AM:  Back in early September, oil was trading at $48 a barrel, and price reset in Michigan to $2.79 on the 5th.  On Friday, oil was trading at $58 a barrel, and gas prices … as low as $2.19 in Wyoming.  But, I also saw a $2.69 yesterday in Lansing, and everything in between in the southern part of the state the past two weeks.  So, what’s going on?  For one, retail gas prices tend to drop in the fall, typically bottoming out in December, as we switch from summer to winter gas.  Also, we had a spike in wholesale prices in the first week of November, related to some temporary shortages that have been worked out of the system, and it looks like some of the stations are having a “clearance sale” now to right their books.  One other consideration is that ethanol, which makes up 10% of what you put in your tank, has been dropping in price the past few months.  Looking ahead short term, I think we reset across the board this coming week, in the neighborhood of $2.59.  Longer term, I suspect we’ll be starting our winter price climb this week, as gas prices catch up to oil prices. -EA

Updated: December 3, 2017 — 11:04 am

28 Comments

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  1. Today I filled up the truck and car, and with Meijer’s M-Perks, I got a dollar off 30 gallons of gas…….$1.22 a gallon isn’t bad….
    Frankly, I am surprised they haven’t raised gas yet…but am ready this time….Also filled up the snowblower, winter is coming soon to the Midwest, so you be carefull on the roads, people forget how to drive in the first snow!

  2. Our local news affiliate this morning had a story on how we are enjoying gas prices that are 30 cents lower than they were two weeks ago. Of course, every time they run stories similar to this we get a price spike within 24 hours.

  3. Yep Bearcat500, happens every time..

  4. Gas prices have fallen for nearly a month for much of Michigan, I’m sure the media covers gas prices weekly, so what happened when they ran those stories the last few weeks?

  5. Gas Buddy showing a price hike for Indy in effect. I haven’t received notification from Meijer text yet. Guess I know what I’m doing on my lunch break!

  6. And there it is: $2.59 in Michigan today.

  7. South Bend going to $2.59 also.

  8. Oil is down and spot has dropped to 1.60 at mid day. Maybe this spike won’t hold long or a few stations won’t raise their price. I’ve seen it happen before

  9. There are stations in the Lansing area that haven’t jumped, which kinda pisses me off considering I ran out to fill everything up during lunch and use forty cents of Kroger points. The Kroger station I went to has actually dropped their prices four cents since noon.

  10. Had to take one of my girls down to central OH to the stud dog today. Saw many stations as I passed by Findlay at $2.18. Do you think I gassed up on my way home? Nah. Arrived in SE MI to find $2.59. Shame on me.

  11. So at 10:51am, someone in the know poo-pooed the idea of a price spike, then 87 minutes later issued a spike alert? Above the spike line by at least .10 and as much as .40 for the last month, still showing more than a dime over spike price, basically told by the head spike watcher the price isn’t going to spike, and here we are headed to a full $1 over spot.

  12. independent retailer

    I am still selling at 3.36 and making .12 cents a gallon.

  13. Retailer…………are you in Cali or Hawaii? $3.36 or $2.36?

  14. independent retailer

    Oops 2.36, I am in Michigan. It won’t let me edit it.

  15. In Fort Wayne, early this morning on my drive in, I noticed Lassus trying to drag everyone into $2.59. But as of 11:30, I don’t think the other stations are having it.

  16. Ohio gasbuddy alert for 2.45
    wonder how that will affect station at end of street thats at 2.499?
    most places around 2.32-2.39 so a pretty small ‘reset’

  17. Rufus, where was a price-hiked “poo-pooed”? My comments were directed at the theory that someone saw a media story and they expected prices to rise because the news story… when the news reports on gas prices weekly, including the three prior weeks in which prices fell.

  18. Prices holding steady at $2.22 near me. Maybe we’ll be one of those locations that escapes the spike? Spot is down 3 cents so far today

  19. Went back down to central OH late yesterday afternoon to pick up the girl I’d left with the breeder. All the stations that I saw as I passed through Findlay were still at $2.17. I got gas at Love’s near Upper Sandusky for $2.22, same as it had been Monday.
    On my return trip I noticed Love’s and Petro in Findlay were still at $2.17 but the Big Red price was $2.45.

  20. Stock prices falling yet Gas Buddy showing spike for Indy. No Meijer alert yet either but it was late last time too.

  21. Chicagoland’s expected hike has materialized to $2.65/2.75

  22. $2.65 popping up in central Indiana

  23. Speedway’s by Notre Dame were 2.38 this morning, now $2.65. Costco 2.24.

  24. Yay! Full dollar over spot. Thanks Speedway!

  25. Cue the naysayers, but it’s “just market forces at work” right ChrisDG74 lol. I’ve noticed a trend lately. Gas price spikes have been happening on days when spot has a nice drop. As a matter of fact spot is down again today to $1.57. Not sure if Big Red has a magical crystal ball in their headquarters building to see what spot might do, but it does seem a little strange.

    Gas price nearest me is now $1.08 over spot….hoooraaaaaay right Chris!!

  26. Chris, you are not alone in noticing the drop on the day of the spike. Something to make you go “Hmmmm”

  27. Market forces….hehe. I wonder if any industry insiders are going to tell us what the justification for this week’s spike is? And just curious…when was the last time the average price was at or below the spike price?

  28. Locking in gains by spiking when crude drops were very noticeable back in the good old days of $100 oil.

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