Quoted: I noticed that for the last 3 months or so that one of the morning business channel (46 I think) is running as part of the crawl the wholesale price of unleaded gas. It has been around $1.59 (this is pre-tax, shipping, dealer mark up, etc).
Sorry Scott don’t think we will be seeing $1.30 gas anytime soon. Well maybe the 80% ethanol mix.
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Well, if wholesale gas prices are $1.59 pre-tax, shipping and markup, then we shouldn't be seeing anything less than $2.20 a gallon or so. Federal tax is 18.4 cpg and state tax is 31 cpg. That is a combined 49.4 cpg. Add that to the $1.59 noted above, and we have $2.084/gallon before any distribution costs or markup.
Now, that could be future wholesale prices, meaning our price for gas will start going up at the pump soon. Othwerwise, that wholesale price would have to include taxes and distribution costs, but not margin or mark up.
Either way, we aren't going to see $1.30/gallon gas anytime soon, but one can dream.