I would like to know fuel prices around USA

[XDCX]

It seems that gas prices are in the news since the average cost per gallon in the U.S. has just dropped below $2.00.

In the Phoenix area gas prices have actually been on a slight rise over the past week or two but I've read that the increase should be short-lived and prices are expected to fall further.

The current price at Costco is $1.76 - but most of the other stations are in the 1.80s to 1.90s.

[steve_biegler]

1.99 now here in South Dakota! WO-HOOOO

[57years]

1.73 Costco this afternoon. I believe stations, in general, are holding prices up thru the Holiday. At current per barrel, I believe there is room for a 20 cents fall.

[XDCX]

Originally Posted by 57years

1.73 Costco this afternoon. I believe stations, in general, are holding prices up thru the Holiday. At current per barrel, I believe there is room for a 20 cents fall.

I tend to agree that there's a fair degree of manipulation when it comes to retail gas prices.

If last year's pattern holds I'm guessing gas prices will fall after the Christmas holiday and then start climbing a few weeks later.

Here's a post I made at the beginning of 2015:

Originally Posted by XDCX

Gas is down to $1.75 in the Phoenix area - a drop of 14 cents in under two weeks.

Blue sky, lower gas prices and the Seahawks are coming to town to play in the Super Bowl - good time to be in Arizona.

[57years]

This morning after drive time, discount gas stations raised to 1.88. Costco has currently held at $1.73.

[XDCX]

I saw and interesting article the other day that indicated the Chicago area has the highest spread between regular gas prices and premium gas prices - the spread is 84 cents per gallon.

For a link to the full report - click here

The article suggested there were two reasons for the increased spread:

The shale oil that comes from the Dakotas has caused a glut of oil in the U.S. and that's been a major factor in lower oil prices. The downside is that shale oil is best suited to be refined into lower octane fuel and the Chicago area gets most of its oil in the form of shale oil.

The other factor is about 90% of the gasoline sold is regular and that's the blend that customers are most price sensitive towards. People who tend to drive vehicles that require high octane are more likely to think of their vehicle first with the price of fuel being a secondary factor.

Call me a skeptic, but I bet the latter factor plays a more significant role than the former factor.

[XDCX]

Originally Posted by XDCX

Gas is down to $1.75 in the Phoenix area - a drop of 14 cents in under two weeks.

Blue sky, lower gas prices and the Seahawks are coming to town to play in the Super Bowl - good time to be in Arizona.

I just checked my GasBuddy app and smiled when I saw that gas at Costco has now dropped to $1.75.

I wonder if that means the Seahawks will be returning to the Super Bowl for a third straight appearance?

[XDCX]

I was traveling through Phoenix yesterday and noticed that a new gas station is apparently having a "Gas War" to establish themselves in the market.

While gas prices have been dropping lately the $1.49 price must have been pure wholesale or perhaps even have been subvented. The gas price at a nearby Costco was $1.62.

Here's a picture - maybe this price level will be commonplace in the near future...?

[conn02]

1.35 at Murphy's at Walmart. I will take a picture and send tomorrow

[57years]

1.43 Costco in No. Ky.

[XDCX]

Originally Posted by conn02

1.35 at Murphy's at Walmart. I will take a picture and send tomorrow

Originally Posted by 57years

1.43 Costco in No. Ky.

Wow, those are some cheap prices.

I thought the $1.49 I saw would be one of the lowest in the nation.

[steve_biegler]

1.72 here in the great white north of South Dakota.

[57years]

Costco currently 26 cents below competition, and has been for 48 hours!

[XDCX]

Originally Posted by 57years

Costco currently 26 cents below competition, and has been for 48 hours!

That does sound like the Costco way of doing business.

If wholesale prices have dropped they'll pass along the savings to their members in an effort to keep people paying for their annual membership.

I'd hate to be a gas station owner near Costco if I had tanks that were full of gasoline that had a wholesale cost higher than what Costco is retailing their gas for.

On a different note, I read a headline over the weekend that Walmart is going to get into the business of selling gasoline. In the past they've had some stores with gas stations on site that were run by third party companies - now Walmart intends to run the stations internally.

[XDCX]

Originally Posted by XDCX

On a different note, I read a headline over the weekend that Walmart is going to get into the business of selling gasoline. In the past they've had some stores with gas stations on site that were run by third party companies - now Walmart intends to run the stations internally.

Here's a link to a report with more accurate information - click here

Based on the report it appears the third party company, Murphy USA, will continue to operate the gas stations that are currently operational but Walmart intends to operate their own gas stations, like they do at Sam's Club, for any future locations they add.

Interestingly, part of the reason for the shift in strategy is that Murphy USA was acquired by a larger company that doesn't have ties to Walmart. Murphy USA was based out of Arkansas like Walmart and apparently the executives of both companies had close ties.