Gas Hike Reason

Gas Buddy LogoI am pissed!  Last week, middle of the day on Tuesday a station in the smaller town I was in raised their gas prices as I was going by from $3.29 to $3.65.  I let my wife and a couple of friends know that they should get gas if they were close to in need via text a little while later, anticipating that a big hike was in the works across every where.  I also waited with much anticipation to see what crazy stuff was going on somewhere, whether it be a refinery fire or shutdown, escalating stances from Iran again, or just some middle eastern uprising crisis otherwise that was causing the spike.  And nothing, no news at all, and though oil threatened higher on Tuesday,  the next 2 days oil prices actually fell sharply downward.  What the heck?

That afternoon, it was clear I was not the only one seeing the crazy gas price hike.  One station on my drive for that Tuesday had gas for $3.19 still.  They had a line of about two additional cars for every pump on there eight pumping stations.  I have not noticed where that particular station is priced since, but usually they are about $.10 above the surrounding area.

Over the next day or two gas prices quickly rose at some stations and did not but barely blink at others.  In my general area on the Eastern side of Lexington outside the circle, almost all stations are up around the $3.65 mark now and have been since late on Tuesday or early Wednesday of last week.  Go as little as fifteen miles away and as far as fifty (about as far from Lexington as I get typically) and you can find plenty of gas still at $3.29.

Keep in mind, this is not the summer rush where formulas are changing and people are driving more.  Both of those are typically prior to and around Memorial Day, and this year, beating the odds, the price per gallon actually feel the week before and remained steady during the holiday weekend.

Even the local AAA reported on the price hike and could not explain any reason for it.  I keep thinking if there were any real reason for the hike, it would be reflected across the region instead of the spotty very localized hikes and flat pricing, though in some cases the prices seem to be different just across small town Kentucky.  That really throws out the whole supply and demand argument, that I usually am so quick to throw out when someone out questions things.  So I am left in wonderment at the reason behind the hike.  It really seems like some suppliers and/or stations are really just sticking it to us because they can if the station across the street is doing the same.  Reminds me of how, despite being separate companies, airline fares trend at about the same general time regardless of the situation in reality.

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