Too Soon for $3

Sunday, September 21, 2014:  2:00PM:  My uncertainty on Wednesday was wise, as prices continue to drop — $3.10 a gallon in Lowell this afternoon!  While ethanol prices continue to collapse, wholesale gasoline did spike up on Friday, so I am predicting a price re-set on Monday.  Maybe $3.49. — Ed A.

Updated: September 21, 2014 — 1:57 pm


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  1. Unfortunately, Greenwood is about 600 miles from Carmel, and much closer to all the refineries in NW Indiana than Carmel, so they enjoy a near 10% price savings over Carmel.

    (:-) for the humor challenged)

  2. independent retailer

    My cost is about 3.20. Sorry to burst everyone’s bubble. But I say it will spike over the weekend.

  3. Your cost as what you currently have in your tanks, your – hopefully – longer term contracts with your – hopefully – long term supplier, or the current short market price (spot?) ???

    Just curious about the process…

  4. I agree with i.r. We’re below the 70 cent spread in Ohio. We MAY hit 8 month lows over the weekend, but Speedway will fix that Monday or Tuesday, back up to 3.399.

  5. independent retailer

    Turbo, I was a few cents off. My cost is about 3.17 today. What I had in the ground cost about 3.22. The process is I order my fuel when I need it. I do have a long term supplier, about 8 years. No contracts, my price is based on the rack price today.

  6. Ok.. So, you’re basically at the mercy of the refiners, many of which have interests in, or are controlled by, you know who. So, you know who can play the spike game slowly choking independents because when you and them sell below cost, you both have to make it up inside, and (a) their inside is generally way more profitable than your inside (b) their rack price is likely less than your rack price (c) they benefit from co-promotions with groceries which you don’t (d) having far deeper pockets than you they can afford to drive you out of business by pricing lower than cost (e) they can benefit from zone pricing while you can’t (f) they benefit from economy of scale which you don’t have.

    Now, I’m not the brightest bulb in the pack, but reasons (a) thru (f) above suggest to my squirrel sized brain that by playing the spike game independents play right into the hands of you know who… To their detriment.

    So… How many kilo clues do I need to correct (a) thru (f) ???

  7. independent retailer

    I don’t play the game. The problem is loyalty, It does not exist. When my price is higher you go to Speedway or whoever. So you are playing into their hands as well. Helping them to drive me out of business…..

  8. Speedway seems to have lots of loyal customers, many of whom fill up and go inside for 30c higher than the guy across the street.

    I can understand your position and often I see them doing just that, but when they spike can’t you just hold your line and price gas based on what it cost you? In other words delay the spike and reduce it’s magnitude.

  9. I personally haven’t set foot in a Speedway in about 15 years, ever since I discovered (on my own) that they are responsible for the violent price swings we see.
    On the extremely rare occasion(around here, at least), that a Speedway is actually CHEAPER, I still go the another brand, just on principle.

  10. Same here Chris. I haven’t been to a Speedway in 10 years. I have also been known to drive a few miles down the road from Speedway into another station that was a few cents higher just to avoid them. I figure if I patronize them when the going is good I should turn in my bitch card.

  11. independent retailer

    Turbo that is what I meant about not playing the game. I do price my gas based on my cost. And sales decrease as I mentioned above. Let me give my 2 cents on why street prices are so low right now. The last 2 spikes in my opinion have not really held. Stations did exactly what you wanted and priced based on cost. Now to punish everyone Speedway is going to hold off and keep dropping the price. The result, we will all fall back in line or go out of business trying to beat them at this game.

  12. And not one of the half dozen Speedway state Attorneys General, retailer trade groups, consumer advocates, and the like will point this out?

  13. Speedway in my area is 3.19 and most other retailers are now at 2.89. Why are they at 2.89 if they are controlled by speedway politics? Shouldn’t they at least be priced in the same general area, not .30 less?

  14. independent retailer

    Turbo really? The government doesn’t even mess with big oil. Robert don’t know what area you are in. However I would guess Speedway doesn’t have much presence in that area? And I would hope that it is a chain and not independents selling at 2.89!!!! BTW cost today 3.09.

  15. 2.83 gas in SE Indy. Our average is $3.13, lowest since late December.

    Now we’re going to complain about Speedway driving the price TOO LOW.

    Gotta love the internet…

  16. $2.78 gas in Indy now.

    I hope nobody filled up on 10/2 just because some news station reported that prices are going down, just because they believe there’s some sort of connection with those reports and spikes. That person would have missed out on the continued steady drop since then.

  17. Filled up at 2.939 Thursday. That station is still 2.939. Still 2nd cheapest in the city. There is a Swifty, 4 miles away, who just dropped to 2.909. today. Haven’t missed anything.

  18. I will probably partake in the $2.93 bargain prices that is in Fairfield, Oh on the way home. Prices too low? Actually I think they are still too high for me. The day I got my first car was in the middle of a gas war and it bottomed out at $.25 a gallon. When it was over it stayed at $.35-.39 a gallon for a few years until OPEC and the energy crisis did its thing.

    I liked it better that way, the prices definately but more so the stability in gasoline prices. When I see a price spike at 30-50 cents at my local station I do a slow burn, every time. If it makes anyone feel any better I did the same thing with college textbooks and most recently beef, butter and cheese.

  19. Ok, is the world going to end of something. Have been in Georgia, and traveled to Arkansas today. Prices in Michigan are actually lower than most of the stations down here. You just don’t see that. But bet they don’t go up to 3.49 in one spike either

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