Posted in: Gas Prices,
by Patrick DeHaan on Apr 27, 2010 09:31 AM
First of all, this post will only pertain to those living in the Midwest, where a large chain of gas stations raises their prices chain wide.
Prices have been increased today in Michigan, Ohio, Indiana, Kentucky, and Minnesota. The increase was expected as retail prices fell as low as $2.55 in Indianapolis, just 20-cents over wholesale futures, and a "loss" for those gasoline stations.
I expect that prices dropped below what was expected in some areas as the Midwest tries to "purge" all remaining winter-spec gasoline, and retailers take advantage of huge discounts offered and sell the fuel cheaply while still making a nice profit.
However, with summer-spec fuel beginning to arrive at pumps, motorists should be ready for additional price increases as the more expensive summer-fuel arrives and winter-spec fuel sales are ceased.
Prices were set to the following:
Indiana: $2.85, $2.99 in Northwest Indiana
If you need gasoline and reside in these areas, you can likely take advantage of lower prices at other stations in the next few hours, but after that, expect nearly all gas stations in these areas to increase prices to close to the prices listed above.
At this moment, wholesale gasoline futures are trading lower, continuing where they left off yesterday. We'll keep a close eye on things.