Who Sets Gas Prices?

By: Lori Dougovito Email
By: Lori Dougovito Email

Don't yell at the guy at the cash register; it's not him who decides. Most of the time, it's a big corporation raising the price first.

In mid-Michigan, that would be Speedway says Mark Griffin with the Michigan Petroleum Association. They can afford to push the price up over cost in order to turn a profit. If they lose a few customers, they can make it up in another market.

Independent gas station owners follow the upward trend because lately, they've been selling gas for less then they buy it.

Kent Kildea owns four gas stations in mid-Michigan. He raised his price to $3.49 a gallon earlier in the week just like the other stations did. "Going into the weekend we were already buying above what we were selling. We expected there might be a correction in the market," he says.

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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Ryan Location: Lansing on May 20, 2007 at 06:39 AM
    Whether you like Bush or not has nothing to do with the price of Gas. After 911 many politicians from the State
  • by Dennis Location: Lansing on May 20, 2007 at 06:22 AM
    The oil companies CEO's state they use their oil revenues to find and explore new oil fields but the real cause of high gas prices is the lack of refining capacity. Instead of using oil profits to upgrade or reopen closed refineries big oil would have use believe that the fault lies in the price of crude oil in which there is no shortage of and is priced accordlingly by global consumption.
  • by Nancy Location: Elsie on May 19, 2007 at 02:47 PM
    I cant take it anymore. When is someone really going to do something about this.
  • by Matt Location: Parma on May 19, 2007 at 12:20 PM
    There was a "blog" going around "MYSpace" for the last month not to buy gas on the 15th of this month. On my way between two jobs Each gas station I saw was full. How much damage to big oil did my space users do. The big oil must of had wind of this since the price per gallon jumped 20 cents per gallon then. Big oil is playing us all. They can afford to give rediculas retirment packages and keep putting more
  • by I wont say I told you so Location: Lansing on May 18, 2007 at 09:55 PM
    See we all suffering for those who elected Bush, we didn't start to see this mess until he got elected. If he'd leave Iraq alone and start to kiss up to them again as in when he was doing it for his own gain, maybe they will be nice enough to give us some gas.
  • by ken Location: camden,mi. on May 18, 2007 at 09:06 PM
    with gas prices at an alltime high,it is just plain greed that raises gas prices.plain and simple.
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