Monday, September 5, 2005

It is Labor Day, and I am full of random thoughts. (1) Looks like Gov. Granholm was playing her own “gas game” with Marathon/Speedway, according to Saturday’s GR Press, as she commended “the state’s largest supplier of gasoline” for dropping prices to $2.99 a gallon on Friday. (2) They probably dropped the price because wholesale prices got back under control on Friday, with the futures losing at least 20 cents. Today you can buy gas in town for $2.88 a gallon! (3) Should I feel complimented or annoyed at the GR Press’ new feature on page 1: “The Gas Gauge”? (4) If the way the retailers calculate gas prices is returning to normal, and if there is no “fudge factor” adjustment to make because of shortages in the Michigan/Illinois region, then the 20-cent margin price this weekend on new shipments is $2.85 a gallon and the 0-cent margin price is $2.64. There’s been an adjustment of about 10 cents upwards the past three weeks, so figure that on Tuesday, the floor for prices is around $2.75. (5) I’m going to predict prices keep falling until Thursday, and then they get reset, and we start over again. These days, it is foolish to predict three days in advance, so I plan to post an update on Wednesday. Prices have been falling verrrry slowwwwly since Monday, so I don’t think the prediction is worth grading.