When I described the local gas prices in Gas prices in Michigan bouncing off a bottom, I displayed some pessimism.
I have been loath to break out Professor Farnsworth this year for low gas prices and what's transpired since I posted Good news on gas prices from Professor Farnsworth supports my usual reluctance. The next day, the corner station raised its price to $3.65. The three stations down the block held at $3.45. Yesterday morning, the corner station undercut their price, selling regular at $3.44. That's lower than before the Syria fear premium took effect. Yesterday afternoon, the price went up again, this time to $3.59. I didn't see what the three stations down the block were charging for gas, but I suspect they went up, too. Why? Econobrowser has an answer.I should have been more optimistic. Saturday afternoon, the local station had already dropped its price to the Detroit average of $3.53. Yesterday, it lowered it some more to $3.45, back where it was when this all started. With that kind of price history, I doubt the three stations down the block moved a cent. I expect to see all four of them at $3.45 or less this morning when I drive past.
It turns out that prices all over metro Detroit and Michigan have risen in the past few days. The day I posted Professor Farnsworth, the average prices in the state and metro area bottomed out at $3.46 and $3.48, respectively. Prices in both areas immediately shot up, peaking in Michigan yesterday at $3.59. In Detroit, they're currently plateauing at $3.53. In that kind of environment, I expect all the neighborhood stations will follow suit, not just the corner station.
As for the relevant average gas prices, the national average is currently $3.49, Michigan is between $3.55 and $3.56, and Detroit is at $3.50. All of them are going down like parachutes. In this environment, combined with the neighborhood stations usually selling regular at up to a dime below the Detroit average, I wouldn't be surprised to see them selling gas at $3.39 within a week.