gasoline

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As Labor Day Weekend approaches, Michiganders are seeing higher gas prices.
The current national gas price hovers around $3.75 for a gallon regular fuel, while Michigan's average gas price is almost $3.93 a gallon, making it the ninth priciest state for refueling. In a press release, the American Automobile Association reports that Michigan is the state with the fifth highest year-over-year gasoline price jump. 

User: Brother O'Mara / Flickr

Boost for Detroit neighborhoods, schools

Governor Snyder was in Detroit yesterday to kick off an intensive neighborhood stabilization effort. It will focus on 3 neighborhoods, anchored by 9 Detroit schools.  Sarah Cwiek reports:

The effort kicked off outside Clark Preparatory Academy in Detroit’s Morningside neighborhood, on the city’s east side. Morningside is one of three communities that will get state help to demolish the abandoned homes dotting the neighborhood, and clean up the area. Lansing also plans to send in some state police patrols, and will put social workers in the neighborhood schools.

Governor Snyder says Detroit must strengthen its neighborhoods if the city is to truly come back.

“That’s the goal. We’re doing this because we believe it will work, and we want to get good experience and do continuous improvement, and then continue to ramp up the program.”

The state is putting $10 million into the effort so far, and Snyder says more could become available. City officials say the state helps supplement existing blight eradication programs.

 Republican Senate candidates hold primary season debate

Three Republicans running for their party’s U.S. Senate nomination appeared together yesterday in their only televised debate of this primary season. Former Congressman Pete Hoekstra, charter school executive Clark Durant, and former judge Randy Hekman are running. Rick Pluta reports:

Steve Carmody/Michigan Radio

Gasoline prices in parts of Michigan are soaring over $4 a gallon.

The recent leak that shutdown an oil pipeline in Wisconsin is getting much of the blame. The Enbridge Energy pipeline has been shut down since it sprung a leak last week.

Steve Carmody/Michigan Radio

AAA predicts 1.4 million Michiganders will travel during the Fourth of July holiday.

Most of them will be driving. GasBuddy.com says drivers should not expect to see a big spike in gasoline prices.

(Steve Carmody/Michigan Radio)

Michiganders will use less gasoline and electricity this summer, that's according to the Michigan Public Service Commission.

The state utility regulatory agency issued its annual Summer Energy Appraisal today.

Judy Palnau is the agency’s spokeswoman. She says there are a couple reasons why the public service commission expects gasoline sales will decline about 2 percent this summer in Michigan.

“Part of that is a economy. But part of that is we are also driving more energy efficient vehicles,” says Palnau. 

Palnau says the economy is also a reason why they expect electricity use will dip slightly this summer.

“Our sluggish economy is still a factor in decreasing use of electricity,” says Palnau, though the MPSC expects residential electric use will increase. 

The MPSC study also predicts natural gas sales will decline nearly 5 percent this summer. A mild winter drove down demand among both business and residential natural gas customers.

World Resources Institute

The Michigan Department of Natural Resources auctioned off state-owned oil and natural gas drilling rights on more than 90,000 acres yesterday.

Here’s a recap of the auction results:

  • Total acres up for auction: 108,164.70
  • Total acres leased: 91,225.42
  • Total money raised: $4,118,848.60
  • Average bid per acre: $39.90

These auctions are typically held twice per year, in May and October.

The money raised from these biannual auctions has been steadily increasing since 2000, hitting peaks in 2008 and 2010.

In the first auction of 2008, the state leased all of the 149,000 available acres for more than $13 million. The last time the state had a 100 percent lease rate was in 1981.

The first auction in 2010 had a 99.6 percent lease rate and raised an unprecedented amount: more than $178 million.

The average bid per acre for that auction was $1,507, which far exceeds the average bids at any other auctions over the last 10 years, all of which have been under $100.

-Suzanne Jacobs, Michigan Radio Newsroom

Michigan gasoline prices are falling.   Prices are down about ten cents a gallon in the past week and are actually 16 cents lower than a year ago.

Patrick DeHaan is an analyst with GasBuddy.com.     He predicts prices will stay below four dollars a gallon through Memorial Day.

"Because of demand being down so considerably year over year I think that's not as much of a story," says DeHaan,   "I think that's why gas prices fell short of where?many analysts would have thought they would have risen to this year."

Jeffrey Simms Photography / Flickr

President Obama is setting his sights on oil-market speculators. The President laid out a plan this week that would make it easier for the government to regulate oil trading markets.

There’s concern in the Obama administration that speculators are artificially driving up the price of oil. The President’s plan would increase spending to provide better oversight of energy markets. It would also increase penalties against those who engage in illegal trading.

Michigan Democratic Senator Carl Levin is in favor of the President's plan. He thinks more regulation of the markets is needed. "This is not a situation where the market is governing – where the usual rules of supply and demand govern. As a matter of fact, if supply and demand were the driving force here, gas prices would be going down. Not up," Levin says.

The President concedes that his plan will not immediately lower gas prices. But he says it will prevent market manipulation which, in turn, will help consumers.

Brother O'Mara / Flickr

Deadline coming for Detroit

Detroit City Council is meeting today to mull over potential changes to a "financial stability agreement" with the state. Gov. Rick Snyder has said this Thursday is his deadline to decide whether or not to appoint an emergency manager for the city, but some think there might be some wiggle room. From the Detroit Free Press:

On Friday, Snyder's chief of staff Dennis Muchmore said on "Off the Record" on public TV's WKAR that "there's a little bit of flexibility that's built into the law" establishing the emergency manager process, and April 13 becomes "another target date" because of an appeal period. But in a comment that received less attention, Muchmore also said that Thursday is "a hard and fast deadline" for Snyder to decide on an emergency manager.

Michigan Radio's Sarah Cwiek reported last Friday that another court hearing on the legality of the state's consent agreement process could further muddle the process. A court hearing is set for April 9th, after Gov. Snyder's April 5th deadline.

Dow to lay off 900 workers

Dow Chemical Co. is set to lay off around 900 people in response to weak demand for its products in Europe.

The Associated Press reports the chemical manufacturer said today the positions will be cut as part of a plan to trim about $250 million in annual costs. They said they will shut down factories in Illinois, Portugal, Hungary, and Brazil, and it will idle a plant in The Netherlands.

Dow Chairman and CEO Andrew Liveris said the company made the decision to adapt to a volatile economy, especially in western Europe.

Dow says it will book a first-quarter charge of $350 million in the first quarter for severance packages, asset impairments and other items related to its cost-cutting plan.

Shares rose 3 cents to $34.67 in morning trading.

Gas prices rising

Gas prices rose about 7 cents during the past week, according to AAA Michigan. Prices are at a statewide average above $4 per gallon for the first time since last June.

From the AP:

The auto club says Monday the average of $4.04 is about 37 cents per gallon higher than last year at this time.

Of the cities it surveys, AAA Michigan says the cheapest price for self-serve unleaded fuel is in the Flint area, where it's $3.95 a gallon. The highest average is in the Ann Arbor and Marquette areas at $4.07.

AAA says Michigan's all-time high was $4.26.

(photo by Steve Carmody/Michigan Radio)

Public transportation is becoming more popular in Michigan as gasoline prices soar.

Gasbuddy.com reports the average price for a gallon of gas leaped to $4.10 this week.

Clark Harder is the president of the Michigan Public Transit Association.   Harder says bus ridership has been rising along with the price of gas in Michigan.

“For a lot of people four dollars is kind of a trigger factor that causes them to think about parking their car and trying out transit," says Harder.

(photo by Steve Carmody/Michigan Radio)

Michigan retailers are becoming more concerned about the impact rising gasoline prices will have on sales.

Michigan’s average gas price leaped over four dollars a gallon this week.

The Michigan Retailers Association released a survey Wednesday showing lower sales projections over the next three months.

Tom Scott is with the Michigan Retailers Association.   He says rising gas prices will force retailers to spend more to ship their products and discourage customers from coming into their stores.

A new analysis by the Associated Press found no correlation between domestic oil drilling and gas prices in the U.S.

So this famous line will get you applause...

... but it won't get you lower gas prices.

"Drill, baby, drill has nothing to do with it," said Judith Dwarkin, chief energy economist at ITG investment research. Two other energy economists said the same thing and experts in the field have been making that observation for decades.

And it's not just Republicans who make these kind of claims.

Placing blame for high gas prices is low-hanging, point-scoring fruit for any politician.

The Associated Press points out that on the campaign trail in 2008, then presidential candidate Sen. Barack Obama said "here in Ohio, you're paying nearly $3.70 a gallon for gas, 2-1/2 times what it cost when George Bush took office."

He's not blaming the White House occupant these days.

The Associated Press' Seth Borenstein and Jack Gillum wrote "statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production by The Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump."

(photo by Steve Carmody/Michigan Radio)

Motorists are spending $4 for a gallon of regular gas in Troy and Okemos. And other parts of Michigan may soon join them. Michigan’s gasoline prices shot up 12 cents on Monday.     

Dustin Coupal is a co-founder of GasBuddy.com. He says increasing world demand for oil is pushing Michigan’s gasoline pricescloser to record high territory.

“Over time, it’s a definite certainty…whether it happens this week ….or next month," says Coupal, "Unfortunately higher gas prices are coming.” According to GasBuddy.com, Michigan’s average regular gas price is around $3.80 a gallon. The state set a record last May, when the average price hit $4.26 a gallon.

Peter Ito / flickr

Governor Rick Snyder is looking for more money to support transportation costs in Michigan. That includes more than $1 billion to fix roads and bridges.

We talk to Susan Demas, political analyst for Michigan Information and Research Service, and Ken Sikkema, former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants.

 

Drivers in Michigan may soon pay nine cents more per gallon at the gas pump.

A package of bills that would change funding for the state’s aging bridges and roads has been rolled out at the state Capitol.

It would get rid of the fuel-tax at the pump in favor of a tax at the wholesale level. That would result in drivers paying a few cents more per gallon. 

Drivers might also have pay more to register their vehicles. The package of bills also includes a plan to increase vehicle registration fees by 67 percent.

That should generate about $500 million dollars for transportation.

State Representative Rick Olson (R-Saline) said generating money to maintain roads is similar to a driver changing the oil in a car.

"Why do you do that? Because you want to save your engine," said Olson. "Same thing with roads; unless we do some of this capital preventative maintenance on a timely basis, we’re going to have more and more roads fall into the ‘poor’ category when then it costs 6 to 8 times as much to repair."

There are no plans to turn any of the state’s major highways into toll roads. But Olson said the conversation could come up in the future.

"Oh, it’s a possibility, but I don’t hear anyone pushing that at this point. Toll roads, tolls are a relatively inefficient way to collect funds for roads," said Olson. "Does create jobs, but those are government jobs, so why not then create the net revenue the most efficient way we can."

The package of bills also includes a plan to create a regional transit authority in southeast Michigan. 

Governor Rick Snyder called on lawmakers to find about $1.5 billion in additional revenue to adequately fund transportation needs.

(photo by Steve Carmody/Michigan Radio)

Michigan may see record high prices for gasoline in 2012.

Patrick DeHaan is a senior petroleum analyst with GasBuddy.com. He expects the average price for a gallon of regular unleaded will hover between $3 and $3.50 for the next few months, but DeHaan expects prices will soar in April and May into record territory.   

Guitarfool5931 / flickr

Legislation is expected to be introduced next month to change the way Michigan pays for road maintenance.

Governor Snyder has a two-part plan for road funding. The first part would switch to a gas tax based on the price of fuel, instead of the number of gallons sold. That’s important because gas tax revenues are slipping as people drive more fuel-efficient cars.

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DEARBORN, Mich. (AP) - AAA Michigan says gasoline prices are down about 13 cents per gallon during the past week to a statewide average of $3.20.

The auto club says Monday the average is about 20 cents per gallon higher than last year at this time.

Of the cities it surveys, AAA Michigan says the cheapest price for self-serve unleaded fuel is in the Saginaw and Bay City areas, where it's $3.10 a gallon. The highest average can be found in the Marquette area at $3.30.

Dearborn-based AAA Michigan surveys 2,800 Michigan gas stations daily.

(photo by Steve Carmody/Michigan Radio)

 Gasoline prices spiked 20 to 25 cents across Michigan today.   

Patrick DeHaan is with GasBuddy.com.  He says the strong start to the holiday shopping season is pushing up speculation in the crude oil market and that in turn is affecting wholesale gasoline prices.   

“A lot of stations have just got close to the line where they’re no longer profitable," says DeHaan, "So, looking at a higher cost that they were paying for gasoline they decided that they had to raise their price.”    

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By Bob Allen for The Environment Report

Officials in Mason County have given the green light to the first large scale wind farm near the Lake Michigan shore. Consumers Energy wants to have fifty-six turbines built and running before the end of next year. But some residents say in its rush to get going Consumers and the County are downplaying a serious threat to public safety.

Natural gas pipelines run through the site of Consumers Energy’s wind park south of Ludington.

A group of residents says at least half a dozen of the windmills are within falling distance of a gas line. And they say if a turbine falls it could cause a pipeline to break with the risk of an explosion.

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