Sunday, July 27, 2014

A fifth drop in gas prices

The cat is still doing the limbo.  Since I posted Gas falls a fourth time, the corner station has dropped its price twice in two days.  Yesterday, it was at $3.39.  Today, it along with the one station down the street that still had power,* was selling regular for $3.38.  The local stations are now inside the $3.35-$3.39 price range at which I expected to find first price resistance--so much for that; the neighborhood price is already below $3.39--and then a floor--only four cents to go!

Even though I quoted a Wall Street Journal article reporting that the wholesale prices of commodities that lead to increases in prices at the pump were up slightly, the retail prices here are still going down.  Since it's Sunday, there should be no new price news on that front, but there is still GasBuddy.  The national average is still dropping, heading from last week's $3.53 down past $3.52 and heading to $3.51.  The Detroit average is below it at just above $3.46, but is showing signs of slowing its decrease, as it hit $3.47 yesterday followed by a flattening out of the curve of a steady descent of 42 cents in 30 days.  Given the shape of the curve, a bottom of $3.35 for the neighborhood stations looks good, as that would be a dime cheaper than the metro average, the normal spread.

One last observation on the gas prices--they are 11 cents lower than last year at this time.  Again, I'd post Farnsworth, but the kitty doing the limbo has priority.

*There was a big storm this afternoon, which downed tree limbs and snapped power lines all over the area.  When WXYZ has video, I'll post it.


  1. Nice

    1. Mama mia! The Italians have found my blog and are posting mortadella (Italian spam)!