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.
How else can the Governor provide an iPod for each child?
Paid $3.40 today in Kentucky.
I never thought it would cost me $40+ to fill up my 94’ Escort.
I remember paying $1.00 a gallon back in 97/98
This is why I would never, ever live there.
I remember filling up on December 31, 1999 at the shockingly high price of $1.37/gallon.
I also remember 99 cents/gallon in December of 2001.
Memories.....
I’d love to get out. I’m currently jobless, due to the lovely new state regulations, I no longer qualify for a job I’ve done for 14 years. I’m stuck in a home that I can’t sell, and my family lives nearby, so I hate to leave them.
I remember here in VA during those years gas got down to .79cents per gallon for the cheap stuff. I ran high octane at that time because it was very affordable. I remember being irritated just 4 years ago when the price went up to $1.30, and now look where we are!
Whatever the cause, you can be sure it's NOT that the oil companies are making obscene profits at our expense. No sireee! They're just honest businessmen trying to scratch out a living in the dog-eat-dog world of free market capitalism.
When I worked at "Oscar's Flying A" gas station back in 1965/66 before I joined the Marine Corps, it was around a quarter ... it was no joke then when somebody'd drive in and say, "A dollar's worth of your finest, please!"
(Best part of that job was that almost nightly, lonely Mrs. Madsen would take a drive, and start it off at the gas station....we kids loved to wash the windshield, over and over and over and over again - she was a flasher)
I just discovered this website last week and am very impressed with some of its explanations and realized predictions:
http://www.thegasgame.com/
There's even a photo of three gas station signs from Feb through May of this year showing the 84% increase.
Hey- when we got married, everything became yours and mine. ;) Love you, honey....
That tends to happen when democrats get elected.
REFINERIES!! NOW
I would suggest just staying home, enjoy your family, do housework, start a hobby, read a book, don’t drive this holiday weekend!
Ha! 19.9 cents, Columbia, Missouri, 1969. My all-time rock bottom price. Columbia had the first serve-yourself gas station that I ever ran across, too. It was called “U-Pump-Ethyl” — No kidding! I always wanted to meet Ethyl, but she never showed up.
Sounds familiar, I have a 4 year degree and I still work at the grocery store.
I don’t remember what year it was but I can remember my parents being quite upset that gas was $1.00 a gallon. I think the exact quote was “It can’t get any higher”.
Never say never I guess.
Finally diesel is the cheapest fuel again, although it is $2.97. We bought out truck when diesel was cheapest, then Katrina hit and it has been all down hill since then.
From different locations. I do not believe any location has seen an 84% increase. National Average is ~38%
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