Gas Prices Climb In Michigan, Drop For Rest Of The Country

By: Hannah Saunders Email
By: Hannah Saunders Email

The people of www.gasbuddy.com say while the country's average is now at a huge .16 cent per gallon price drop from this time last year, Michigan is going in the opposite direction; selling it at .07 cents more per gallon than last August.

Michigan State University Economist Charles Ballard tells me it's mostly because three refineries in Illinois and Indiana are malfunctioning, and at the same time, a pipeline in Canada broke; putting our gas stations right in the middle of it all: "that leads to really tight supplies."

But he says the prices shouldn't get much worse, or stay where they're at for long. Refineries and pipelines are usually fixed within a couple weeks.

"However, when the price of gasoline spikes upward because of a supply problem, It usually goes up faster than it comes up," Ballard continued.

Meaning you should expect it to be a month or two before you're paying what you were for gas earlier this week, as long as there are no new problems here or in the middle east.

The prices now are still nowhere near what most of the experts expected them to be this summer. We told you in the Spring they could get up to $5 because of international oil prices, but that didn't happen because of a decrease of domestic prices.

Oil production in the United States is up, and now the state only pays $90 a barrel, compared to the $92 a barrel we paid this time last year.


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