At the end of AAA and ABC News declare end of gas below $3.00, I described how the gas price spike caused by the fear premium was ending.
[L]ocal prices at the pump have gone down, although not by the most direct path. Last Friday, all the nearby stations lowered their prices to $3.77. On Monday, the same stations raised them to $3.79. The corner station wasn't content there. On Tuesday, its price shot up another 20 cents to $3.99. That ended up being another charge into No Man's Land, as the three outlets down the street held their prices steady. By the end of the day Wednesday, the corner station retreated back to $3.79. Today, all of the stations dropped their prices back to $3.69, exactly where they were when I wrote Crude prices reflected at pump after slight delay.The local stations held steady at $3.69 until yesterday afternoon, when all of them dropped their price to $3.65. I was right when I wrote two weeks ago that "Prices will go up, but the $3.69 at the corner station is too high." Unfortunately for my prognostication, it took two weeks for regular gas to fall below $3.65, not a few days.
I should have known better. On the gas price rollercoaster, the cars go up like a rocket, down like a parachute.