Last summer we lamented the price of gas. This year, however, there's at least one upside. Retail sales for June were up 0.6% - substantially better than the 0.4% anticipated - with the gas prices leading the charge. A slight tip in the brutalized auto manufacturer sector helped, as well. This was the largest retail sales increase in five months.

Gas stations benefited from the cost of fuel, adding a bit of pep to a beleaguered retail industry: sales were up 5% year over year, after doing the same in May. And, car dealers had their best month since January: the sales of cars and parts climbed 2.3%. Nonetheless, this corner of the retail world is still off 14.5% from last year. It may have helped last month, but we're still pretty far from a cure.

Continue reading Gas prices drive retail sales rebound, coveted brands still struggle

Gas prices drive retail sales rebound, coveted brands still struggle originally appeared on BloggingStocks on Tue, 14 Jul 2009 16:45:00 EST. Please see our terms for use of feeds.

Continue reading Oil has dropped $13, so gasoline should drop 30 cents, Americans hope

Oil has dropped $13, so gasoline should drop 30 cents, Americans hope originally appeared on BloggingStocks on Thu, 09 Jul 2009 17:00:00 EST. Please see our terms for use of feeds.

Economist Peter Dawson did not fill up his car's gas tank with gas Saturday, and for a good reason.

"The price of gasoline is trending lower, so the longer you wait the less you'll pay," Dawson said.

In fact, in addition to cutting back his driving, Dawson is performing another modest act of conservation, which, if applied across the states, should help lower prices even more over time: he's not filling up his tank. If he uses 10 gallons in a week, he's replacing the 10, not filling the tank completely.

The above will help cancel-out the effect of a practice that's all-to-familiar to drivers: as soon as oil prices rise, gasoline stations immediately increase their prices. During the current oil shock, gas stations would some times raise prices 20 or 30 cents overnight, occasionally, more, he said.

The above practice is justified from a cash-flow standpoint, Dawson said, because gas stations are trying to prepare for the higher cost of the next gasoline delivery from gasoline wholesalers: a rise in oil prices means their next delivery is going to cost more, and to pay for it, gas stations "immediately raise their prices, so their cash flow isn't hurt."

Continue reading If you think gas prices haven't fallen fast enough, you're right

If you think gas prices haven't fallen fast enough, you're right originally appeared on BloggingStocks on Sat, 25 Oct 2008 14:40:00 EST. Please see our terms for use of feeds.