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It's now that time of the year when gas prices increase due to market anticipation. The market anticipates shorter supplies when refiners shut down in April to retool to produce summer fuel formulations mandated by the federal government. Here are actual weekly gas price increases I observed in Kalamazoo this time last year: This spring increase is built into the futures market years in advance. March 2008 gasoline futures (which will be your gas prices in February 2008) closed at $1.6723 yesterday. April 2008 gasoline futures (March 2008 for you) closed at $1.7973 yesterday. That means the market currently predicts retail gas prices next February will be $2.439 and $2.571 next March. A 13.2¢ increase is already built into the market for this time next year. This year's actual increase was about 18¢, up from about $2.279. Gasoline futures: March 2009 - $1.6793 Similarly, the annual fall slide, which lasted like 7 weeks in 2006, is built into the market: September 2007 - $1.7693 September 2008 - $1.8118 September 2009 - $1.7943 Futures contracts for gasoline currently extend to February 2010.
April 2009 - $1.7733
October 2007 - $1.6713
October 2008 - $1.7033
October 2009 - $1.6793
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