Gas Price Sticker Stock in the Twin Cities
Once upon a time — like, until yesterday — savvy motorists (and Costco members) knew to head to Costco’s gas pumps whenever prices jumped.
Like they did Wednesday.
A LOT.
That’s because Costco’s gas prices notoriously lagged other stations’ price changes by a full day.
Not anymore.
On Wednesday, I filled up car #1 at Costco at 3:30 p.m. for $3.83 a gallon; scarcely three hours later, the same 89 octane gas was $3.99 a gallon (it’s $4.09 today).
Total cost to fuel our household’s two cars: about $170!
Cause and Effect or Effect and Cause?
Having been south of the (Minnesota) river earlier in the day Wednesday, I can also report that strategy #2 — buy gas in the far south or north ‘burbs, where it’s cheaper — no longer works, either.
On the contrary, the Apple Valley and Burnsville gas stations seemed to be ahead of the closer-in stations hiking their prices.
Once upon a time, I (also) used to think that oil companies shares went up because gas prices — and therefore the companies’ profits — were up.
Now, I think prices at the pump go up . . . because the oil companies’ shares are up (I had the causation backward).
P.S.: the same phenomenon appears to be true of sports franchises’ market value and ticket prices.
That is, franchises appreciate, then ticket prices rise, not the other way around.
The explanation: the new Buyer seeks to support the lofty purchase price by squeezing out more revenues.
