Sunday, October 13, 2024, 7 PM: Let’s talk about what happened last week. On Wednesday the 9th, we continued to be in this situation: a wide range of retail prices, oil ticking up (and bouncing around), and months of aggressive pricing to the upside in Michigan. That was a recipe for a price reset, and on Wednesday evening, Marathon made its move, posting $3.59 at several stations in Kent County. This was 20-40 cents higher than their competitors. Next step, naturally, is that other retailers would follow suit so that by Thursday afternoon, it would be $3.59 throughout Michigan. In fact, for the Speedway station I watched in Fort Wayne, they went from $2.91 on Wednesday to $3.39 on Thursday.
In Michigan, that didn’t happen. (Hooray!) Instead, other retailers that I observed continued the typical drop of a few cents, and today you can find gas under or close to $3 at many stations in Kent County and points east. (I saw this while driving to East Lansing on Saturday.)
So, what happened this time? Did the usual fall lull in gas prices finally find its way to Michigan? Maybe. I am beginning to see that the problem has been at the wholesale level, rather than the retail level. Maybe this strike at a key refinery in Detroit has something to do with it.
What’s next? I predict they’ll try again this week to do a state-wide reset. Hey, Big M, maybe this team be less aggressive (like, you know, $3.29-$3.39), and I’d bet the other retailers will fall into line. -EA