Monday, September 12, 2005

More good drops in gasoline prices on NYMEX should translate into lower prices over the next several days. Using this afternoon’s futures quote (approx. $1.85), and plugging into my formula (with a “fudge factor” of 0 cents), gives a 0-cent margin price of $2.37, and a 20-cent margin price of $2.59. So, c’mon retailers, let’s pick up the pace in passing those price drops along to us! (By the way, that’s a prediction!) Are there really stations still asking $2.99 this afternoon? We fell to $2.54 in Standale by Sunday evening, much lower than the $2.79+ we were seeing on Monday. CORRECT prediction.