Sticker Shock-$3 a gallon gas? Click the picture:
Note well, the first reply was snarky- who is laughing, now?
Posted on 05/22/2007 7:57:30 PM PDT by mombyprofession
Gas prices hit record highs
Updated: May 22, 2007 10:36 PM
By MARC THOMPSON
GRAND RAPIDS -- Gas prices have spiked again, jumping nearly 30 cents across West Michigan.
The average in most communities is about $3.65 per gallon for regular -- a new record.
The highest gas prices throughout the nation are on the West coast and in the Midwest.
24 Hour News 8's Marc Thompson asked Mark Griffin, president of the Michigan Petroleum Association, why gas prices are so high in Michigan.
"We would like to know the answer to that too," Griffin said. "It seems like big oil has raised its costs to us."
Griffin represents the gas station owners in the state. Since the first of May, Griffin said the cost to Michigan station owners has gone up by over 40 cents per gallon.
He sites several reasons, including summer travel demands, higher prices for crude oil and refineries switching over to summer gas blends. In addition, the Indiana refinery, which supplies Michigan with gasoline, is operating at only 50 percent capacity.
"But it seems like we're a little bit higher than we should," Griffin said.
He said one other reason for the high prices could be the high cost of transporting gas to Michigan.
"If you figure most of the gas production in this country is in the gulf area, it makes sense that the areas closest to that would have lower costs because it doesn't have to be transported as far," Griffin said.
That still does not explain why Michigan prices are higher than that of other Midwest cities like Toledo, Ohio.
"They're settled in the middle $3.30s, where as we're settling in probably more like $3.50s," Griffin said.
Bringing us to the one x-factor that separates Michigan from most of the nation.
"We're one of only a handful of states that charges sales tax on gasoline and right now our tax is 56 to 58 cents a gallon," Griffin said.
Many store owners are barely breaking even, he said.
For example, right now they purchase gas for about $2.88 per gallon. Factor in the Michigan sales tax of .57 cents and .20 cents for shipping and the total cost to store owners is $3.651 per gallon. When they charge $3.659 per gallon they are making less than a penny per gallon of gas.
"Is it just the fact that we have higher taxes," Griffin said. "It could very well be."
Griffin said most stations are independently owned. Only corporate stations, such as Speedway, can afford to lower prices to gain more market share. Corporate stations balance things out by raising prices in other locations though.
The northern Midwest is on the brink of widespread gasoline shortages, so it's more expensive, but the energy industry is attempting to divert gas from the Houston to help out. Before the summer is over, do not be surprised if you pull into a gas station and that don't have any gas.
The only downside to a place like FreeRepublic is that people tend to spout off political talking points that don't actually apply to the real world. It's so irritating. Do some research. It's great fun (really).
For instance, did you know that the United States produces 2.5 times as much oil as Iraq does? Or that Saudi Arabia only produces about 14% of the world's oil?
I'm sure those facts will surprise some people.
www.speedway.com
Central Valley of California here...gasoline up 47.6% since November 2006.
Sticker Shock-$3 a gallon gas? Click the picture:
Note well, the first reply was snarky- who is laughing, now?
I still l can’t figure out why an industry is PUNISHING their customers for using an essential product. We buy gas, the oil companies say “oooh, you drive too much! You buy too much much gas, so we’re going to raise the prices to make you use less. Oh, yes, we’ll rake in record profits, but that’s of no concern to you”
I have a horse and buggy on order, just as soon as I save enough money (anyone want to buy a great violin?) to drive up north and pick them up!
Michigan is not perfect. We do indeed have some high gas prices. But let me ask you this: can you buy a nice 3 bedroom/2 bath home for under $150,000 anywhere in your state?
I'll take the high gas prices, thanks.
No I’ve never been there. And yes you coud buy dump in an awful neighborhood in a small town that nobody wants to live in for that price. Those of us who own homes bought in the 80’s or earlier are sitting pretty when we’re ready to move to another state. California could be it’s own country with the economy it has. There are too many illegals here, but whose fault is that? Native Californians? It’s the climate and the economy are making this state overpopulated.
I only included the image because I can personally attest to purchasing gasoline in late January for $1.99/gallon at Speedway in Grand Rapids, MI. That price was widespread in th area. Yesterday, I drove past Speedway with the price on the sign being $3.65. And again that price was widespread in the area. I confess that I'm no mathematician or statistician, but I can certainly see that's not very far away from a $2 increase over a $2 price in only 3-4 months.
Also, in November I bought an older Subaru to commute in. The Durango I so enjoy is parked in the driveway, except when the whole family has to go somewhere (the children's car seats don't fit in the Subaru). When I first started filling the car up, I was pleased that it only took about $20. Now just a few months later, it takes about $35. That's a $15 increase on a $20 purchase ... not terribly far from double in a relatively short time period. At twice a week, that can be an additional $120+ per month burden on a family that is already struggling in the face of double job losses, a rising standard of required credentials/qualifications in our previous careers and the sacrifices that are part of retraining to enter the ministry.
Again, my apologies, I understand its probably useful in other areas across the country, but I personally don't find the national average terribly indicative of or helpful to local circumstances because Michigan really isn't the national average ... for example, compare our unemployment rate to the national average.
I do not believe that is possible true. I did go look at your source. He shows no data at all, just 3 pictures from obviously different locations and claimed dates.
purchasing gasoline in late January for $1.99/gallon at Speedway in Grand Rapids, MI. That price was widespread in th area. Yesterday, I drove past Speedway with the price on the sign being $3.65
Measuring from a low point dip is not a fair comparison.
Bottom line: If I had any regular, it would be $3.09, now that I do have some, it's $3.12.
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