Not going to complain about retailers keeping it until $4 in Michigan

Comment on the May 13 prediction:  Michigan got a reprieve two weeks ago, although Minnesota didn’t.  But I was WRONG.

Wednesday, May 29, 2013, 11:30AM:  Things have been rather screwy lately.  Speedway-led price hikes have been more localized to certain states or regions, which led to relatively cheap gas in Ohio two weeks ago, and crazy-high prices in Minnesota.  Here in Michigan, prices re-set to $3.99 on May 20, which by my calculations was the same price retailers were paying, so in some ways, we were getting a bargain.  Then, while Chicago spot prices rose last week, and prices in Standale were $3.97, suddenly they were $3.79 and stayed that way all weekend.  Yesterday, another re-set to $3.99, but many stations in Grand Rapids decided not to play, and you can get gas for $3.79 in Wyoming today.  Why not follow with the hike?  Because wholesale prices dropped hard on Tuesday.

By my calculation, retailers are paying $3.79 today for gas, so $3.79-$3.99 would be the retail range right now, and that’s what we have.  But it is hard to predict right now what to expect the next several days. — Ed Aboufadel

Updated: May 29, 2013 — 11:28 am

4 Comments

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  1. makes no sense, how can the refining cost be so volatile so does the price of transportation? only thing that the Gr/Sp-eedway looks for is money! those non-christians would even suck the blood out of Jesus if it were worth any money!

  2. I’m pretty sure the blood of Jesus is worth SOME money. I hear it makes a good wine. 😉

    Before the May contracts expired, refiners were buying on the market. They usually put into the market after meeting their demand. Thus supply is low. The laws of supply and demand are pretty clear on this, supply goes down without a corresponding demand decline, and the price will go up. Fortunately this is temporary. June futures were falling like a rock with the news that BP will be restarting the unit of it’s Whiting refinery that has been down. Unfortunately today it rallied with more refiner buying.

  3. Once again crude drops on ‘economic concerns’ right when the illuminati hike prices on gasoline. Way too predictable…

  4. $4.15 a gallon this morning up from $3.79 at midnight.. Time to start complaining

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