Prices have not soared like an eagle, chiefly due to lower wholesale prices

Comment on the January 29 prediction: I implied a prediction of a hike to $3.49, but that was WRONG, as retail prices throughout west Michigan worked their way towards Alpine Avenue numbers, below $3.20.

Sunday, February 12, 2023, 3PM: I just got back from the Tampa area in Florida, with gas prices looking a lot like ours, with a wide range around $3.29. Let’s take a look at our numbers today. Since our last hike on January 23, oil prices have been quite stable, while wholesale gas prices have actually been slipping, and that has been the chief reason why a price hike hasn’t occurred. I am estimating the 0-cent margin price today to be $3.09, and we’re seeing prices as low as $3.05 in Grandville. Our friends at the Big M aren’t showing any action this Sunday, perhaps as everyone prepares for the Big Game. But what happens next week?

I think that any uptick in wholesale prices will lead to a price reset, maybe to $3.39. Today, I filled up for $3.15, and that seems like the right strategy at the moment. Seeing Valero stock soar like an eagle to 6% on Friday supports that higher prices are on the horizon. -EA

6 thoughts on “Prices have not soared like an eagle, chiefly due to lower wholesale prices

  1. A mini hike for Speedway in a portion of the Chicago Metro area. All the $3.22 in my area went to $3.39 yesterday. A “proper” price hike would he $3.59.

  2. I’ve seen a few stations here in mid-Michigan go to $3.39 over the last day or so, but it’s not widespread yet. I filled everything up last night, which probably means prices will trend down.

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