Crude oil futures are (still) at historic highs, and the last time gasoline futures (specifically, New York’s version of reformulated unleaded) were trading at this level, gas was tickling $3.30/gallon in southeast Wisconsin. I picked up gasoline the other day at $2.88/gallon, and MilwaukeeGasPrices.com has gas as low as $2.73/gallon (note; they drop the 0.9¢, I round up because we pay the extra penny on 9 out of every 10 gallons).
Hmm, what could be the difference between then and now? Anyone? Bueller? Bueller? Before you say, “Ethanol,” it’s trading at some of the highest levels of 2007 (December 2007 ethanol at CBOT is over $1.95/gallon). True, it’s significantly lower than the 2006 highs, but those $3.30/gallon gas prices were earlier this year.
Also, before you say, “RBOB”, I’ll note that while NYC RBOB isn’t the same as Milwaukee/Chicago RBOB, they’re close enough, and that NYMEX switched to quoting NYC RBOB some time ago. As a further side note, while those cheaper gas prices haven’t hit much of the state, Janesville, Beloit, and points west of there also have cheap gas, and the last time I checked, there was no RBOB or ethanol requirement there.
Rather, it can fairly be attributed with the elimination via judicial fiat of the minimum markup law with respect to gasoline. Care to revise and extend those remarks that said that eliminating the minimum markup law wouldn’t make any difference, governor? I’m sure the rest of the state would like to enjoy those benefits.
Related to that, a couple of my favorite Assembly members, Leah Vukmir and Bill Kramer, introduced a bill called the Competitive Marketplace Act the other week. It will in one bold stroke wipe out that onerous markup mandated on not only gasoline but tobacco and alcohol, and also wipe out the very real competitive disadvantage Wisconsin retailers have compared to those just across the borders.
