In case you haven't been following gasoline prices lately- I'll give you a pointer: prices are headed downward. Having said that, it only makes sense for me to reiterate that motorists should not be filling their tanks full as I expect that prices will continue to fall in a majority of states. Even prices in Salt Lake City- some of the highest in the country- are showing signs of improvement.
Why fill your tank with more expensive gasoline when you can take advantage of falling prices as well? Sure- gasoline stations would love you to fill your tank- it would help them get rid of more expensive supply, allowing them to buy new supply at a lower cost, but how about some savings for you?
Just in the past few days, prices near me have fallen from $2.80 per gallon to $2.65 in some areas- a whopping 15-cent drop in just a few nights. If I would have filled up at $2.80, I would have spent $40.00. If I filled up completely for $2.65, it would cost me $37.85. If I wait more and prices drop to $2.55, I would have saved almost $5- enough for some more groceries. When prices are falling it only makes sense to pump what you need. I pumped $10 worth of gasoline the other day- sure it only lasted a few days, but prices dropped in the meantime.
If some gasoline stations want to play games with lowering their prices, I'll just buy as little as possible, and I encourage you to voice your opinion with your wallet as well- don't fill up when prices are falling.
The United States average has dropped to $2.86 while prices in Canada are again nearing 103c/L. In the next week, I expect the U.S. average to be closer to $2.80 while prices in Canada drop to 102c/L. Many areas of Canada will again drop to 99.9c/L, and areas of the U.S. could see prices as low as $2.39 in a handful of areas that have the lowest gas taxes (think South Carolina, New Jersey, Oklahoma, etc.)
Tomorrow the Department of Energy Weekly Petroleum Status Report comes out- let's hope its good. Analysts are expecting builds in gasoline (summer driving season just a few weeks away). Some are expecting a drop in utilization, but I'm expecting no change or an increase as refiners take advantage of healthy crack spreads (margins). Stay tuned for that report, highlighted here, at 10:45-11am EDT tomorrow.