Another Good September for Gas Prices

Tuesday, September 8, 2020, 7AM: It continues to be a real snoozer in Gas Game land. Wholesale oil prices have been vibrating around $40 a barrel since mid-June, leading to retail prices in orbit around $2.10 for three months. We’ve gotten up to $2.25, and today we are under $2 in a lot of places. Historically, September is a good month for lower gas prices, as Big Red and friends tend to not be aggressive with their pricing, as they eye the end of the summer gas season. Right now, I estimate the 0-cent margin price to be $1.89, with prices in west Michigan ranging from $1.69 in Sparta to $2.09 in Grand Rapids. I can’t see those prices below the margin price sticking around too long, but it is unclear if will have a system-wide reset this week. If we did, it would probably go back to $2.09. -EA