Sunday, May 5, 2024, 5 PM: The price for a barrel of oil broke below $80 this week, taking pressure off of wholesale gas prices, and slowly but surely, off of retail prices. For instance, in Lowell today, I saw gas for $3.61 a gallon vs. $3.85 on April 24. I expect price moderation to continue this week, and in retail corridors that include a K&G in Kent County, the price is $3.39 a gallon right now.
The beginning of May of even years is when I reset the spreadsheet I use to predict gas prices. I will continue to daily monitor prices on Lake Michigan Drive (on the way to work!) and at a Speedway in Fort Wayne near family members. Following Allendale prices was interesting for a while when the new increased competition was occurring on I-96 north of GVSU, but then they stopped competing. Instead, I am going to keep an eye on the Costco on the east side of Kent County, which I believe is a good proxy for the 0-cent margin price.
As you can see in this screenshot from my 2022-24 spreadsheet, it is more fun to play the Gas Game in Fort Wayne, where price hikes are fewer and they dissipate quicker. The screenshot is typical of what I observe. Arguably, Fort Wayne has a lot of gas stations on the southwest side of Allen County, creating localized gas price skirmishes. We could use more of those here in Michigan. -EA