Sunday, January 7, 2024, 3PM: Stocks, bonds, and energy all started the new year dropping a bit the first week, which was a bit of a surprise, as historically the first week of the year is bullish. For gas prices, that meant no new pressure to reset upwards, and in fact, prices kept sliding. You can find gas for under $2.59 a gallon here in west Michigan this afternoon, and it appears the most expensive gasoline is $2.87 in Allendale.
While keeping an eye out for the beginning of the usual winter climb in prices, let’s do the math to compute our 0-cent margin price. Starting with a raw wholesale price of $1.75 a gallon, if we add in all of the taxes along the way, and an estimate for transportation and other hidden costs, I get to $2.50 a gallon. For loyal Gas Game readers, you know that is our floor for prices, and honestly, we are not there yet, although over the past few months, once we get within a dime, that can trigger a price reset. So the $2.59ish prices are close, so I am going to go on price hike watch the next few days. New price of $2.89? -EA