What’s Up With These Gas Prices?
After declining 4 cents early last week, gas prices in Michigan jumped 12 cents in the middle of the week. Now it appears additional price-hikes could soon be on the way. What's up?
I checked into it and found that during the past week, AAA said oil and wholesale gasoline raced to their highest prices since November. The average price for wholesale gasoline has climbed a total of 32 cents in the past three weeks, with nearly half of that hike occurred last week. So, what happens at the pump? Up...up...up!
Michigan gas prices are the highest of 2019. Sunday's state average of $2.37 per gallon is 8 cents more than a week ago, and nearly 30 cents more than this time last month. The sort of good news is that despite the recent increases, Michigan drivers are still paying almost 10 cents less than this time last year.
AAA says that gas in Michigan is:
• Most expensive gas price averages: Marquette ($2.42), Jackson ($2.41), Saginaw-Bay City-Midland ($2.41)
• Least expensive gas price averages: Traverse City ($2.32), Metro Detroit ($2.35), Flint ($2.36)
Prices rose after news that OPEC is making good on its promise to cut production, and reports of refinery issues at multiple plants in the northeast. One of the other key reasons for rising prices right now is refineries entering maintenance season. This is a time of year when refineries do 'spring cleaning' and to prepare for the switch to summer-blend gasoline.
WZZM reported that Gas Buddy's Patrick DeHaan said, "Today's hike in #Michigan seems unjustifiable. Many of the hikes are expected, at least somewhat, based on wholesale #gasprices, but after last Wednesday's hike to $2.39/gal, this jump today to $2.55/gal seems... bogus and unwarranted."
Hey, gas people, cut us some slack!