Posted on Mon, Feb 28, 2011 : 9:52 a.m.
Gasoline cost up 27 cents since last week; Ann Arbor has highest price in the state
By Cindy Heflin
Ann Arbor and Traverse City had the highest prices in the state with an average of $3.46 per gallon, the auto club said.
The lowest-priced regular gasoline in the Ann Arbor area today was at the Sam's Club at Carpenter Road and West Michigan Avenue in Pittsfield Township, according to the website GasBuddy.com. The station was selling gas for $3.32 per gallon.
Earlier this month consumers were already starting to feel the pinch from rising gas prices.
Comments
iamwrite
Tue, Mar 1, 2011 : 1:42 p.m.
Time for some "gas-roots" organizing! If everyone planned on filling their tanks on a Tuesday, and refused to visit gas stations the rest of the week, the prices would go down. Oil has retreated from last week, yet gas prices have continued to go up. The gas prices will not retreat this spring and summer. The prices will increase during hurricane season, also when the refineries switch to their "summer blend", and then again before Memorial Day, and 4th of July. (This is getting really predictable and we need to tell the gas corporations and speculators that we have had enough of their organized robbery.) The oil companies want $100 per barrel, because it gives them max profits without cutting into their bottom line. Speculators want high oil prices, because they make record profits! I will be rationing my fuel, and only visit the gas stations that are the cheapest around. I worked hard to earn my money, and I will not be throwing it away at Ann Arbor prices.
Plubius
Tue, Mar 1, 2011 : 1:28 p.m.
I find it hard to believe that prices in A2 are the highest in the state. Just two weeks ago, gas prices in Port Huron were $0.16 higher than Ann Arbor.
thinker
Tue, Mar 1, 2011 : 3:54 a.m.
Why does our government refuse oil and gas drilling and exploration when we could become independent of foreign oil, or nearly so, and not have to put up with this anxiety? And the high prices! Admittedly, the other oil producers are using this instability to jack up prices. Even if we just HINTED that we might open up our own energy supplies to drilling, of hinted that we might release some of the emergency gasoline supply in this country, the price per barrel probably would drop. (It has in the past, when other presidents have used this psychological ploy. ) Think Chess Game!
snoopdog
Tue, Mar 1, 2011 : 3:50 a.m.
This is all George W. Bush's fault is it not, remember, gas was 4 bucks a gallon in the summer of 2008 ? Oh, that's right, he has not been President for two years. Then who do we blame, ok, let's blame the oil companies. Well, maybe not, gas was only $2.46 per gallon in September of 2009. Well, well, well, must be some darn Republicans fault anyway ! Good Day
KJMClark
Tue, Mar 1, 2011 : 2:59 a.m.
The Financial Times has some good background on the problem. Here: <a href="http://blogs.ft.com/beyond-brics/2011/02/28/chart-of-the-week-the-lost-arab-generation/" rel='nofollow'>http://blogs.ft.com/beyond-brics/2011/02/28/chart-of-the-week-the-lost-arab-generation/</a> and here: <a href="http://www.ft.com/cms/s/0/615035c4-437a-11e0-8f0d-00144feabdc0.html#axzz1FCm5vqgK" rel='nofollow'>http://www.ft.com/cms/s/0/615035c4-437a-11e0-8f0d-00144feabdc0.html#axzz1FCm5vqgK</a>. One problem is that all the swing supply is in the middle east, but the middle east is full of countries with autocratic regimes, young populations, high unemployment, and high income/wealth inequality. In the past year or so food prices have risen dramatically. That's hit those large unemployed populations hard, and they're deciding that they don't have much to lose in trying to overthrow their dictators. Libya isn't just around 2% of world production, it's around 5% of world exports. And as John B. pointed out, their exports are light, sweet crude, which is particularly good for making motor fuels. The Saudis have spare capacity, but it's heavy, sour crude, that requires extra processing to make motor fuels, and not all refineries can even touch the stuff without expensive and time-consuming investments. But that's not the only problem. Saudi Arabia is one of those autocratic regimes, with a demographic profile just like Libya's, high youth unemployment, and high income/wealth inequality. So what happens if the second or third domino in the chain is Saudi Arabia? If the Chinese wheat crop fails, as seems fairly likely at this point, world wheat prices are just going higher, and food prices will just get harder for people in the Middle East to afford. Ever higher food prices might push even Saudi Arabia over the edge. Part of these high prices are a risk premium for Saudi Arabia.
townie54
Mon, Feb 28, 2011 : 11:06 p.m.
It must cost more to import fuel to Ann Arbor.Trucks have to drive through our Mountains and jungles to get here and then the wetlands of Allen Creek.....Plus the prices go up as soon as they hear barrels of oil cost more even though they didnt pay the high price for the fuel thats in their storage tanks allready.Corporations rule the world
jcj
Tue, Mar 1, 2011 : 12:13 a.m.
And soon they will have to take the long way around the bridge ruins!
TrappedinMI
Mon, Feb 28, 2011 : 8:34 p.m.
Gas prices were on the rise before all the turmoil in Egypt was publicized. I was asking my friends on facebook a while back if they had noticed the prices. I hate these gas prices. It really sucks and I'm financially tired of it.
John B.
Mon, Feb 28, 2011 : 8:10 p.m.
Do folks know that the North Slope source in Alaska has slowed so much in output now that the pipeline is carrying so little oil that it will literally be in danger of freezing up at some point in the not-necessarily-so-distant future? I think it's at about one-third of its capacity, or something like that....
jrigglem
Mon, Feb 28, 2011 : 6:44 p.m.
Tecumseh must be the new Ann Arbor because gas is $3.45 a gallon here too.
John B.
Mon, Feb 28, 2011 : 7:55 p.m.
Probably less competition there to keep prices low. Am I right?
jcj
Mon, Feb 28, 2011 : 6:34 p.m.
Be careful how far you drive to save on gas! $3.50 vs $3.25 a gallon A savings of 25 cents a gallon You save $5.00 on a 20 gal fill up If you get 20 mi to a gallon and have to drive 10 miles to get the cheaper gas it will cost you 2 gallons of gas to get the "savings". Those two gallons of gas cost you $6.50 so it actually cost you $1.50 extra to get those savings!
babmay11
Tue, Mar 1, 2011 : 5:34 p.m.
Your math is off, if you get 20 miles to a gallon and drive 10 miles to get it, it's 20 miles round trip so only 1 gallon, not 2, so you still save $1.75. But your point is still valid.
jcj
Tue, Mar 1, 2011 : 12:12 a.m.
townie54 Agreed! So as yeah buddy stated it would save $1.75 on a 20 gal fill up. Not enough for me to take an extra 30 minutes out of my time.
townie54
Mon, Feb 28, 2011 : 11:09 p.m.
if you get 20 miles a gallon and you drive 10 miles thats a half gallon each way.Dont you agree?
jcj
Mon, Feb 28, 2011 : 9:05 p.m.
Yeah Buddy Guess I am getting senile! I stand corrected. But I would still be careful how far you drive because most of the time you will not save 25 cents a gallon and my time is worth more than $1.75. I agree that too much is being charged at every station. My point was much the same as it is for people going hither and yon for groceries.
John B.
Mon, Feb 28, 2011 : 8:03 p.m.
His general point is well-taken, though. I would add that the cost to operate a vehicle is significantly more than just the fuel cost. Figure anywhere from $0.50 - $1.50 per mile, depending on the vehicle. On newer vehicles, depreciation is usually the biggest component, followeed by perhaps insurance costs, and then fuel. In the 'old days,' I could operate my $500 used Chevy Citation 'clunker' for about seven cents per mile. GM would pay me 25 cents per mile to use it (back then), so I figured I was making a profit driving for my employer.... Those days are long gone, though. Many vehicles are around $1 per mile now.
Yeah buddy
Mon, Feb 28, 2011 : 7:12 p.m.
Actually, round trip at 20 mpg would be 1 gallon burned and you would be saving $5-$3.25=$1.75 in savings. Besides, it's more about sending a message that people aren't willing to pay extra.
Edward Vielmetti
Mon, Feb 28, 2011 : 6:26 p.m.
Chain Reaction (1996) is by all accounts an awful film, but it has at the core of its plot a device to turn water into fuel. <a href="http://www.imdb.com/title/tt0115857/" rel='nofollow'>http://www.imdb.com/title/tt0115857/</a>
jcj
Mon, Feb 28, 2011 : 6:19 p.m.
"I read a thing on the internets where some guy in his garage got a Chevelle to get 69 miles per gallon by burning water!" Yea and I saw a wild hog on the internet t was 12 feet long and weighed over 1,000 pounds! 2-3-2011 NEW ORLEANS — The federal judge who struck down the Obama administration's moratorium on deep-water drilling after the Gulf of Mexico oil spill held the Interior Department in contempt Wednesday and ordered the federal agency to pay attorneys' fees for several offshore oil companies. <a href="http://www.denverpost.com/nationworld/ci_17276810" rel='nofollow'>http://www.denverpost.com/nationworld/ci_17276810</a> The Obama administration is not responsible for high gas prices but they are doing NOTHING to help lower cost! The last refinery built in the US was in 1976! Why? Because oil companies don't want to spend profits to lower prices. Because nobody wants a refinery near them. Because it take years to get permits and complete environmental studies.
Edward Vielmetti
Mon, Feb 28, 2011 : 6:10 p.m.
And here's Gasbuddy's weekly gas price outlook: <a href="http://blog.gasbuddy.com/posts/Weekly-gasoline-outlook/1715-436843-502.aspx" rel='nofollow'>http://blog.gasbuddy.com/posts/Weekly-gasoline-outlook/1715-436843-502.aspx</a>
Edward Vielmetti
Mon, Feb 28, 2011 : 6:07 p.m.
I like the gas price maps from GasBuddy; my notes on it from last year (2010) when area prices were closer to $2.85/gal. <a href="http://www.annarbor.com/vielmetti/gas-price-maps-from-gasbuddycom/">http://www.annarbor.com/vielmetti/gas-price-maps-from-gasbuddycom/</a>
EyeHeartA2
Mon, Feb 28, 2011 : 5:42 p.m.
@Turd Ferguson Yep, that's what you get when you put a big oil guy in the White House. What did you expect? He's in bed with all of them. Plus, the car companies are in bed with big oil. I read a thing on the internets where some guy in his garage got a Chevelle to get 69 miles per gallon by burning water! Water, I tell you! They just don't want you to know about it.
Pizza Man
Mon, Feb 28, 2011 : 6:19 p.m.
I had heard a story a while back about a guy that made his car run on tap water. None of the Auto Company's were interested in the idea. The company that bought the patent rights was a big oil company, to keep it from every coming out. Another idea I heard was that Prohibition had more to do with Henry Ford wanting to keep his plant based fuel over the Oil Companies less efficient product. Henry Ford held out for a long time. Once he gave in to the Oil Company, Prohibition ended 2 weeks later.
andys
Mon, Feb 28, 2011 : 6:16 p.m.
There was a TV show in the 1960s called, "ONE STEP BEYOND." One episode was about a guy who created a pill that when dropped into water, turned the water instantly into gasoline. As the story goes the pill could be made for almost nothing, but was bought up by big oil interest and buried, the shows stories were supposedly true. Sounds about as plausible. If this were true could it really be squashed, seems like the truth would bust out at some point.
John B.
Mon, Feb 28, 2011 : 5:12 p.m.
Crude oil prices are like stock prices - subject to market 'shocks,' speculation, and plain-old human emotion. The most recent increase in crude oil prices is basically a 'Libyan risk premium' due to the uncertainty of continuing production there. Libya produces about 2% of the World's crude oil, but it's apparently really high-grade stuff that is able to be refined into many different petroleum products easily, so it's difficult to quickly replace it with a like amount of equivalent crude. Regular-grade gasoline is now about three gallons for ten Dollars (here). I remember when it was three gallons for one Dollar. My parents remember when it was three gallons for a quarter!
EyeHeartA2
Mon, Feb 28, 2011 : 4:33 p.m.
@packman; The reason gas costs more in AA than other places is that we are dumb enough to pay it. I'll fill up my lawnmower with AA gas, other than that, no way. Boycott the gas stations that are ripping you off and watch the price fall like a rock. It's disgusting what they charge with respect to other gas stations in SE michigan. Your car can't tell the difference between 3.49 a gallon and 3.29. Don't pay it!
John B.
Mon, Feb 28, 2011 : 5:35 p.m.
The best price on the west side of AA is almost always at the truck stops at Baker Road and I-94 (Exit #167). They can be 10-15 cents below others that are only a couple miles away.
loves_fall
Mon, Feb 28, 2011 : 4:31 p.m.
"Ann Arbor has highest price in state." Since when is that news?
packman
Mon, Feb 28, 2011 : 4:16 p.m.
Gasoline is usually more expensive in Ann Arbor than it is elsewhere. Don't know why that might be. Auto gasoline is priced based on the great unknown, that is, what will it cost to replace the gasoline in the storage tanks? Aircraft gasoline, on the other hand is priced based on what it actually did cost to fill the storage tanks when they were filled.
Ignatz
Mon, Feb 28, 2011 : 4:42 p.m.
I suspect that AA prices can somewhat reasonably be attributed to higher property taxes.
Ryan J. Stanton
Mon, Feb 28, 2011 : 4:14 p.m.
There was a good discussion on The Diane Rehm Show on NPR the other day about the volatility of oil prices amidst the turmoil in the Middle East. Give it a listen here: <a href="http://thedianerehmshow.org/shows/2011-02-24/oil-prices-amidst-turmoil-arab-world" rel='nofollow'>http://thedianerehmshow.org/shows/2011-02-24/oil-prices-amidst-turmoil-arab-world</a>
tracyann
Mon, Feb 28, 2011 : 3:57 p.m.
I agree Ignatz. It seems as if someone so much as passes gas in the Middle East the prices at the pump go up. It's ridiculous.
John B.
Mon, Feb 28, 2011 : 5:15 p.m.
And you're able to produce how much out of your back yard? The main problem is that we give far too many of our Dollars to Petro-Dictators because we are addicted to oil.
Matt Whale
Mon, Feb 28, 2011 : 3:56 p.m.
Gas costs $1.80 per gallon in the UAE I believe. It's possibly inexpensive in all the counties in the Middle East.
Ignatz
Mon, Feb 28, 2011 : 3:44 p.m.
This has to be due to speculation concerning the situation in some of the oil producing countries. You be hard pressed to convince me it's nothing but an excuse to raise prices and not based in any kind of reality.