Monday, November 7, 2005

1:45PM: I’ve been doing about as well as a coin flip since late August, when Hurricane Katrina blew through. So, I apologize for being WRONG half the time, although I’m losing the Gas Game, too. So, what’s going on here? Wholesale and retail prices have been dropping like a stone since the end of September. I’ve heard that retailers are selling below cost, but they are waiting for Speedway/Marathon to hike prices first. Then there’s something I theorized back in May that is starting to look like a new rule to follow: Retailers are very impatient during uptrends in wholesale prices, but during downtrends, they are in no hurry to do price hikes, even if it means selling below cost. If anything, it is a clearance sale of merchandise they paid too much for.With futures prices down another 5 cents today, the price cuts can continue around town. But all that can turn around at any time. So, no prediction right now, enjoy the cheaper gas, but keep vigilant for an always-possible price hike.

There was a price hike, sort of. Speedway reset to $2.29, but in some parts of town and in Allendale, they took it back right away because the competition didn’t match the new price.

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