Wednesday, September 7, 2005

There’s a real disconnect right now between gasoline futures prices on NYMEX and retail prices around the country, and retail prices could easily be 25 cents lower right now. That means either there still are supply bottlenecks leading to higher wholesale prices than are being captured in the futures market, or the retailers aren’t in any hurry to pass along new cuts in their wholesale price to consumers. The latter is why competition is always important! Contrary to what I posted on Monday, I can’t see how it is possible to hike prices for the rest of the week, and I am going to look for lower prices ($2.70 a gallon?) by the end of the weekend. CORRECT on that prediction, as prices slowly went down, getting to $2.73 in Standale on Sunday night, and $2.68 today.