Gasoline Price Hike Coming

July 7th, 2013 at 1:54 pm by under Bill's Blog, News, Weather

gas prices

Time to fill-up.   Here’s the latest from Ed:  “Comment on the July 1 prediction:  One of my better ones, as prices rose just as predicted.  CORRECT!

Sunday, July 7, 2013, 10:30AM:  On Tuesday, the “spot price” for the Chicago area was about $2.64, which corresponded to a price to retailers of $3.33, after all taxes and other costs are factored in.  We saw a hike that day to $3.59.  Since Tuesday, the spot price has risen to about $2.79, leading to a price to retailers of $3.48.  With prices in the Grand Rapids area at about $3.48, that is a recipe for a price hike on Monday or Tuesday.  Prediction for new price:  $3.69-$3.74. –Ed Aboufadel

27 Responses to “Gasoline Price Hike Coming”

  1. Arlene says:

    It seems like if they can lower the prices to $3.28 right before the 4th of July, they could lower it back down a little more. If they want to promote tourism here in Michigan, doesn’t that make sense? Raising the prices deters tourism.

    1. Cort S. says:

      These market price fluxes happen on a regional (multi-state) level. The only way the state of Michigan can lower its gas prices is by reducing the state gas tax. It won’t solve the volatility issue, though. That’s called the Speedway effect. Unfortunately, if Michigan reduces its gas tax, it’s going to have to find other ways to raise funds. So one way or the other, you’ll have to pay.

  2. mikelikespike says:

    Poooooooooop

  3. todd says:

    Wow I didn’t think they can this in the passed when that up there prices is if there gas tanks were out of the old gas and it was all new gas in there tanks and not more the 0.05 at a time now look they go up whatever they want this is not right

    1. michael g (se GR) says:

      Can anyone translate this into English? Seems like it would be fascinating.

    2. Brian(Grandville) says:

      Wow!!!

  4. Jack says:

    Pure….G$$D!!!!!!

  5. Travis (Oakland County) says:

    The price of oil rose +7% last week alone. I’m surprised retail gas hasn’t climbed already.

    Ed knows there’s already this site that updates just about everyday, right?

    http://www.gaspredictor.com/

  6. Debbie Smit says:

    big deal they are at $3.39 now. That’s not that big a jump.

  7. Judi I says:

    Always have an analyst or consultant on standby who seems to know when prices go up or down. We can already see it at the station’s sign. The CEOs of the oil companies keep thinking we are stupid and I guess we are if we keep putting up with it.

    1. Cort S. says:

      Your own personal consultants, take your pick –

      gaspredictor.com

      thegasgame.com (This is the one that Bill uses)

      gasbuddy.com

  8. Judi I says:

    By the way, how do these analysts and consultants get paid?

    1. Cort S. says:

      Well, if you are the customer, then generally you are the one who pays them in one way or another. Gaspredictor.com and Gasbuddy.com seem to get their funds through web advertising. (Be sure to turn off your AdBlock software, if you have it, for the websites that you appreciate so they can keep doing what they’re doing.)

      TheGasGame was started by Patrick in Grand Rapids, who was eventually hired as an analyst/blogger for GasBuddy. Ed is now the main guy who writes for TheGasGame, and he seems to do it on his own time. Ed is a professor at GVSU.

      1. Judi I says:

        Thanks, Cort. It still stinks no matter how you look at it. Guess I’m in the wrong business. :-)

        1. Cort S. says:

          I hear ya!

  9. Barb says:

    Gas up here in Cheboygan has been 3.69 since I’ve been here. The price up here hardly changes.

  10. Justine Starr says:

    well gas prices that go up stinks but at least its not over $4.00

    1. Scott says:

      That’s exactly what they want you to think. If you look outside the box, they always give gas a big hike. For instance the last time they jumped all the way to $4.29, then dropped it back down so that we won’t complain so much when its between $3 and $4. But I will agree with the analysis that if the demand drops so will the prices. So DON’T fill your tanks just put in what you’ll need for a few days. It’s a pain to have to stop and put gas in your cars 2 or 3 times a week, but if it keeps prices down, so be it.

      1. Gump says:

        your suggestion of not filling up won’t make a difference in gas prices. You are still using the same amount of gas, you are just spreading it out over several visits to the gas station. You will only be inconveniencing yourself.

  11. Marti B. (Grandville near Rivertown Mall) says:

    Can we say GREED on the part of big oil?

  12. Jack says:

    OBumer’s Fault…;-)

  13. CJ says:

    As Speedway goes, so goes the rest of the city. When you seen Speedway has higher prices than anyone else in town, then you know the hike has just hit or hasn’t made it all the way across town yet.

  14. INDY says:

    Daylight is over not even 10pm WINTER IS COMING,,,,,,,INDYY..

    1. Barry in Zeeland says:

      Cloud cover will do that.

  15. Michael says:

    Isn’t it funny that when the “prediction” comes out, that is when the prices rise. Once the public is comfortable with the raise, it raises….easy fix….stop coming out with the amount. If we want to push for anything, push our legislators for one of two laws: 1. You can’t charge more for gas that you already have in the tank (e.g. If you are charging $3.50 for gas in the tank right now, it doesn’t automatically raise to $3.69 or more. It is the same gas)…2. Let free market decide the cost. If one person raises its rates, it doesn’t mean that all have to raise as well. These agreements the stations have to keep all the rates at the same level should be outlawed.

    1. Cort S. says:

      Isn’t it funny that when the “prediction” comes out, that is when the prices rise. Once the public is comfortable with the raise, it raises…easy fix…stop coming out with the amount.

      Except… there have been plenty of times there have been incorrect predictions… where the next day, spot/wholesale gas prices to retailers dropped due to an unexpected market drop, and a hike would fail to occur. It seems as though the free market is already at work, and gas prices are mostly tied to the stock/energy market as a whole. But yes, it would definitely help if we could outlaw & eliminate the abuses to the free market… e.g. collusion and speculation.

  16. Dan says:

    Gas prices have no reason than to be any higher than $2.10 per gallon at the most. It’s all gouging and creating the sense that there is panic in a refinery or bad weather is on the way.

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