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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