Month: May 2019

Still keeping it under $3

Comment on the May 5 prediction: Prices dropped slowly that week, as CORRECTly predicted, but then we had a pair of hikes to $2.99.

Monday, May 27, 2019, 11AM: Where has this month gone? We’ve been bouncing around between $2.69 and $2.99 here in Michigan, while last week’s action in the futures markets suggest lower prices ahead. On Thursday the 23rd, oil prices dropped considerably, and in a sign that this would help gas prices go lower, Valero stock went down 6%. I think we’ll see retail prices trend below $2.70 as the week goes on, which is already the case in Comstock Park, and that will get us to the end of May. -EA

Taxes per mile instead of per gallon?

Comment on the April 20 prediction: It was absolutely CORRECT, as prices rose to $2.99. But, I missed the hike on May 1.

Sunday, May 5, 2019, 11AM: Gas prices in California are over $4, and they are ready to go over $3 here. We may get a break short-term, as oil prices have dropped from $66 to $62 a barrel recently. Meanwhile, with the idea of a large per-gallon tax being proposed by the Governor, there is talk of other ways to think about raising enough revenues to keep the roads fixed, such as per-mile changes and congestion pricing. The Prius drivers of the world, getting 50-60 mpg, end up paying much less per mile that a typical car.

Meanwhile, here is an interesting graphic from OPIS that indicates what can influence gas prices along each part of the chain.

Only prediction today is that gas prices should drop slowly but steadily this week, and I doubt we’ll see a hike. -EA

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