For posterity, let me document that at 4PM today in Standale, Citgo was still at $1.44, while Meijer had matched Speedway’s morning price hike and was selling gas for $1.59, while the Marathon had matched Speedway’s afternoon price hike and had gas at $1.75. This evening, checking prices on the Internet, it appears that Meijer is still at $1.59, while BP and some others have also raised their price to $1.75.
So, what happened here? The first price hike made sense because wholesale prices had started rising earlier this week, and if they had raised prices this morning to $1.65-$1.69, it would have even fit my mathematical model. On NYMEX today, prices did soar, and wholesale prices there went up 10 cents a gallon, but usually it takes a least a day for something like that to affect retail prices. I guess by this afternoon, someone had CNBC on and saw the NYMEX price up and sent out the second price hike e-mail of the day.
Is this really the best way to run a business?
Living and working in Standale as well.. how frusterating it was to drive by at 3:50pm to pick one kid of from school.. the other from daycare.. and then go back to the gas station to find the price up another 15 cents.
So I did as just about everyone else who saw Meijer’s price, and got in line there. Meijer’s Gas Station was a zoo this evening.
A definite sign of turbulant economic times. TWO price hikes in one day and now at the beginning of the overnight trade, wholesale is down 2-3 cents. Are we in for a loss of the entire day’s gains?? I’m sure the expected OPEC cuts are playing a role, but the recent turn in the auto bailout plan may have a downward effect on oil and the stocks tomorrow. From what I notice in my following of wholesale prices and crude oil, barring any unforeseen changes, the market is simply preparing for an OPEC cut and we will see a barrel of oil back at $40 within a couple weeks max and crude back down. I’m in line with Patrick’s prediction of the possibility of $1 oil before $2 (sorry Ed). I wouldn’t be surprised to see the initial hike price of $1.59 by the end of next week if not sooner. Who knows though, this is just my 2 cents. I will not complain about $1.75 gas when I think back to $4.29 a mere 4 months ago given my GR to Lansing commute every day.
I know I have seen it elsewhere and it may be another state, but I swore gas stations were allowed by law only one increase in a day.
Ed – “Is this really the best way to run a business?”
It’s not the best way to run a business when you blaze your price for the whole world to see, but if any other product was miss priced as a retailer you should and must fix the problem. That is good business. The move should have been 1.699 you are right about that.
Here in Muskegon, Wesco went from 1.47 to 1.75 yesterday afternoon.
Oil is tumbling today on the markets. Despite OPEC efforts the economy will continue to produce dismal news for the time being and prices will continue to drop.
Listening to those southern senators last night rail against the auto loans makes my blood boil. Next time a hurricane or a string of tornadoes strikes the south I wonder where they will find sympathy. NOT FROM THIS HOUSEHOLD! They have unleashed a sunami upon our economy and as they sow so shall they reap.
Spring Lake must not have gotten the Speedway memo (not that I’m complaining) for the second hike. I got gas this evening for $1.579. Meanwhile the prices from E. Lansing to Coopersville were still in the $1.75 range. Weird.
Standale prices have gone down saturday to $1.59 at the Marathon and $1.58 at the Citgo and $1.59 at the Speedway station and Meijer was at $1.73 as of 10:45AM.