gasoline

(courtesy of the National Hurricane Center)

Hurricane Irene should not have an impact on Michigan gas prices, according to an industry analyst.  The hurricane is expected to make landfall along the North Carolina coast tomorrow, before bearing down on the Jersey shore, New York and New England Sunday. 

(photo by Steve Carmody/Michigan Radio)

Michigan corn farmers may be losing a ‘safety net’.   The Congress is expected to vote soon on ending ethanol subsidies.    The move is expected to save the federal government $1.3 billion this year. 

Ethanol in the United States is mainly produced using corn.  Michigan farmers increased their corn production in recent years as federal mandates required ethanol in gasoline.  

(photo by Steve Carmody/Michigan Radio)

Michigan gasoline prices are getting closer to four dollars again.  GasBuddy.com predicts prices will increase by another 5 to 10 cents during the next few days.  That’s on top of a 20 cent jump the week before the Fourth of July holiday weekend. 

Jason Teows with Gas Buddy says increasing demand is fueling the price increase at the gas pump. 

Suncor Energy

DEARBORN, Mich. (AP) - AAA Michigan says gasoline prices are down 16 cents per gallon over the past week to a statewide average of $3.56.

The auto club says Monday the statewide average is about 71 cents per gallon higher than last year at this time. But the price has fallen 56 cents in three weeks.

Of the cities it surveys, AAA Michigan says the cheapest price for self-serve unleaded fuel is in the Lansing area, where it's $3.41 a gallon. The highest average can be found in the Ann Arbor and Marquette areas at $3.62.

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

Lester Graham / Michigan Radio

Everybody’s got a theory why gasoline prices shot up.

“I think gas prices are up because we’re getting our gas from the wrong place.  We need to get gas from Alaska.”

“I think gas prices are up because it’s summertime and everybody wants to travel and it’s a conspiracy.”

 “Government regulators are not willing to rein in Wall Street.  If you can speculate on a commodity and you have a hedge fund that’s big enough, you can affect prices and earn profits.”

(photo by Steve Carmody/Michigan Radio)

Five Detroit area gasoline station owners have been charged with price fixing.   The five gas stations are located in Madison Heights and are within 2 miles of each other. 

Michigan Attorney General Bill Schuette says an inside source claims the gas station operators agreed to keep their prices within a penny of one another on at least five days in February and early March of this year. 

Schuette says there is a difference between watching your competitors’ prices and colluding to keep everyone’s prices high. 

Raising Gas Taxes

Jun 7, 2011

Yesterday, as the congressman from New York was going through his excruciating televised confession, someone called to ask me, “why don’t we have any good sex scandals in Michigan?”

Chevrolet

When it comes to fuel economy, Roger Clark says, "how you drive matters."

Roger is a fuel economy expert with Chevrolet. He has a few tips for getting more miles per gallon without buying a new car. We tested his driving style against Monte Doran’s, also with Chevy. Roger and Monte drove matching Chevy Cruzes and took identical routes. Both did a little highway and a little city driving on a weekday around 5pm. Roger followed his own fuel saving tips and Monte did exactly the opposite.

User: yooperann / Flickr

Gas prices in Michigan are up 17 cents per gallon even though oil prices fell below $100 a barrel Monday.

Patrick DeHaan is with gasbuddy.com. He says gas prices in the Great Lakes region are between 30 and 60 cents higher than the national average.

“A rash of refinery and pipeline problems is leading prices higher as already tight gasoline supply becomes even tighter with these refinery and pipeline outages that we’ve seen in the last two weeks.”

Three refineries in Illinois and two crude suppliers to the Great Lakes region had unexpected problems, including power outages and leaks.

DeHaan expects Michigan gas prices will go back down in the next couple of weeks.

Emily Fox- Michigan Radio Newsroom

user brother o'mara / Flickr

Changing the state's motorcycle helmet law

Michigan is one of twenty state requiring motorcyclists to where a helmet, but that might change. The Saginaw News reports on two pieces of legislation aimed at allowing riders to go without a helmet:

Two bills repealing the state’s helmet law have been introduced in the state Legislature.

House Bill 4608, sponsored originally by Peter Pettalia, R-Presque Isle, and co-sponsored by Rep. Kenneth Horn, R-Frankenmuth, would allow riders 21 or older to go without helmets if they carry at least $20,000 in personal liability insurance.

Senate Bill 291, sponsored by Sen. Phillip Pavlov, R-St. Clair, would not require helmets on riders 20 or older if they have passed a safety course or carried a motorcycle endorsement the previous two years.

The Saginaw News reports Governor Granholm vetoed two bills similar to these, and Governor Rick Snyder hasn't taken a stance on them.

Gas prices up again

AAA Michigan says the cheapest gas in Michigan can be found in Lansing, and the most expensive can be found in Ann Arbor. From the Associated Press:

AAA Michigan says gasoline prices are up 17 cents per gallon over the past week to a statewide average of $4.12.

The auto club says Monday the statewide average is about $1.37 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 Lansing area, where it's $4.07 a gallon. The highest average can be found in the Ann Arbor area at $4.15.

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

Flags lowered today

Governor Rick Snyder has ordered flags to be flown at half-staff today for Staff Sgt. Ergin V. Osman - a member of the Army's 101st Airborne Ranger Pathfinders. Osman was killed by an improvised explosive device on May 26.  From the Associated Press:

Gov. Rick Snyder has ordered U.S. flags throughout Michigan to be lowered to half-staff in honor of a military serviceman who died in Afghanistan.

The order was in effect for today.

U.S. Army Staff Sgt. Ergin V. Osman, who grew up in Macomb County's Harrison Township and Sterling Heights, was killed along with five other soldiers by an improvised explosive device on May 26. He was a member of the Army's 101st Airborne Ranger Pathfinders based at Ft. Campbell, Ky.

Osman was 35.

(photo by Steve Carmody/Michigan Radio)

Sunday afternoon in Battle Creek a religious group plans to help about 20 poor families gas up their cars and trucks.  The group,  Free Gas USA, is providing 50 dollars-worth of gasoline to pre-selected families. 

Reverend William Stein founded Free Gas USA in 2008.    He says having some form of transportation is essential for struggling families. 

(flickr farlane)

More than a million Michiganders are expected to spend part of the Memorial Day holiday weekend travelling to popular tourism destinations.  But they are expected to watch their spending too.  

A AAA Michigan survey found Michiganders plan to spend about 14% less on things like food and other amenities during their Memorial Day holiday travels this year.  The main reason - 4 dollar a gallon gasoline.

(photo by Steve Carmody/Michigan Radio)

A gasoline industry analyst expects Michigan’s gas prices will continue to decline through the Memorial Day weekend. Gas prices peaked at well over $4.25 a gallon this month.  But for the past few weeks, gas prices have declined steadily. 

The U.S. Environmental Protection Agency says gas stations can now sell gasoline blended with 15% ethanol for all cars built in 2001 or after. Right now, when you fill up in Michigan, your gasoline has 10% ethanol.

The EPA says E15 gasoline will help reduce our need for foreign oil. Ethanol is made from plants like corn. The EPA only tested the effects of E15 on emissions and catalytic converters.

But ethanol is corrosive. Patrick Kelly is with the American Petroleum Institute.

Richard Holden / Flickr

Some potentially good news for Michigan's economy.

In May, the consumer confidence index for the state rose "to 72.4, a three-month high," according to Bloomburg News.

Omair Sharif, an economist, says that the rise can be attributed to improvements in employment numbers despite the destabilizing effect of high gas prices.

Bloomburg News reports:

Michigan Senator Debbie Stabenow and Congressman Gary Peters say the government should do more to help the auto industry mass-produce fuel-efficient technologies.

The two Democrats were at Bosch auto supplier headquarters in suburban Detroit today to urge Congressional support for the Advanced Vehicle Technology Act.

The bill would authorize $300 million a year for private sector fuel-efficiency research.

Peters says "this is just the right thing to do" with Michigan gas prices at record highs:

 "You’re going to hear a lot of ideas about drilling and other types of ideas, but really the best idea is to push the technology," said Peters. "Push innovation. And that’s what we do here in the Detroit area better than anybody else in the world, and that’s innovate with vehicles and automobiles."

Peters says the legislation has support from both environmental and business groups.

The bill passed the U.S. House with bipartisan support last year, but it couldn’t get through the Senate.

F. Olastuen / Flickr

Delta Air Lines is planning to offer "voluntary early retirements and buyouts" to its workers.

The reason? Rising jet fuel prices.

From the Associated Press:

Delta Air Lines Inc. says it will offer voluntary early retirements and buyouts to its employees because it must shrink to cope with high jet fuel prices.

Phillip Capper / Flickr

Gas prices continue to climb in Michigan. They reached a new record today hitting an average of $4.26.

From the Detroit Free Press:

Gas prices continue to climb in Michigan, with the average cost per gallon of regular gasoline jumping to $4.26 today from $4.22 on Tuesday.

Previously, the record price had been set in summer 2008. Tuesday's price broke that record.

A year ago, the average price per gallon in the state was $2.94.

In 2008, when gas prices shot up, demand for gasoline dropped as Americans adjusted their driving habits.

Some experts say that's not likely to happen this time around as Americans are not as shocked by the high gas prices.

(photo by Steve Carmody/Michigan Radio)

Michigan gasoline prices have reached a record high. According to GasBuddy.com, the price for a gallon of gasoline has never been this high in Michigan. 

Patrick DeHaan is a senior petroleum analyst with GasBuddy. He says the old record was $4.25 a gallon. DeHaan says the price at the pump in large parts of Michigan is now higher than $4.29 a gallon. He says refinery problems are causing gasoline supplies to drop in the Midwest.

DeHaan says Michigan motorists should be aware, we may not have reached that peak pump price yet. 

 “Whatever you expect…can change.  And so, if there is another issue like this we could see prices continue higher.   But history tells us that prices will reach a new peak sometime in May.”

DeHaan does not expect the death this week of Osama bin Laden will have an affect on gas prices.

(photo by Steve Carmody/Michigan Radio)

It appears rising gasoline prices are getting more people to ride public transportation in Michigan.  But that’s a double edged sword for local bus systems.  

It will be a few months before all the numbers are in, but Clark Harder with the Michigan Public Transit Association says, demand for bus service is up.   He says more and more people are opting to take the bus, because it’s getting too expensive to fill up their own gas tank. 

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