Thursday, November 02, 2006
Predict future gas price movements
Predict future gas price movements
I thought I’d write a new article about how to predict the price you will be paying at the pump in your area.
The best way to find these numbers is to talk to someone who owns a gas station, I know a few people in the oil business so just asking them was the easiest and most accurate way for the me to do it.
Depending on the state taxes which can be found here: http://indianagasprices.com/tax_info.aspx and the amount your gas station operator wishes to make will influence the price you pay at the pump.
Wholesale gas prices can be obtained at Bloomberg.com. Finding the gas prices within the next few days is rather easy. Take the current price at the pump, subtract state taxes and you are left with the profit margin. Add the profit margin and the state taxes together to get the amount you should add to the wholesale price to find future movements.
Here in the great state of Indiana, $.55 is added to every gallon as tax/operator profits. By checking Bloomberg.com I can accurately predict the prices of gas within the next couple days.
Warning people of the possible hikes or drops in prices will lead to quite a following. It’s a good networking idea to tell anyone who drives if prices will be dropping soon. I’ve gained quite a following from people who are interested in where gas prices were going, if only they knew it was that easy.
Predicting gas prices can be both fun and rewarding when you are correct. If you like to cut costs, start by using the calculations above to decide when you should fill up your tank. $2 here and there makes a big difference in your retirement portfolio. These savings mean big money over the long run