gasoline

Auto/Economy
12:29 pm
Mon June 6, 2011

Leaks and outages bump up Michigan gas prices

ExxonMobil in Joliet, Il. is one of three refineries in the Great Lakes region that had unexpected problems in the last two weeks.
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

News Roundup
9:23 am
Mon June 6, 2011

In this morning's news...

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.

Economy
3:01 pm
Sat May 28, 2011

Free gas giveaway in Battle Creek Sunday

(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. 

Economy
12:01 pm
Fri May 27, 2011

Ready....Set.....SUMMER

A view of Front Street, Traverse City, Michigan
(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.

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Economy
4:00 pm
Fri May 20, 2011

Michigan's gas pain easing

(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. 

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Environment
1:50 pm
Thu May 19, 2011

More corn in your gas tank?

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.

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Auto/Economy
2:02 pm
Fri May 13, 2011

Michigan consumer sentiment index rising

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:

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Auto/Economy
2:12 pm
Mon May 9, 2011

Stabenow and Peters push for investments in advanced auto technologies

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.

Auto/Economy
1:44 pm
Fri May 6, 2011

AP: Rising jet fuel prices motivate buyouts at Delta

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.

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Auto/Economy
11:53 am
Wed May 4, 2011

Driving habits remain as gas prices break records

Commuting in Chicago. Gas prices are rising, but driving habits don't seem to be changing as drastically as they did in 2008.
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.

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Economy
3:01 am
Tue May 3, 2011

Michigan gas prices hit record high

(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.

Economy
12:59 pm
Sun May 1, 2011

Bus ridership is up in Michigan (but so are fuel prices)

"Get on the bus" that's a refrain heard more and more in Michigan as people are forced to find other ways to get around as gasoline prices move into record high territory.
(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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Auto/Economy
2:17 pm
Fri April 29, 2011

Why are Michigan's gas prices so high?

We’ve been hearing for weeks about gas prices rising around the country. 

The national average reached $3.909 today according to AAA’s Daily Fuel Gauge Report.

Michigan, with an average of $4.116, is more than 20 cents higher than the national average.

When we tweeted the new state and national gas prices on Wednesday, one of our Twitter friends asked why Michigan's average was higher.

The answer may be a combination of state taxes and delivery costs.

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Economy
12:27 pm
Wed April 27, 2011

Michigan retailers feeling pain from soaring gasoline prices

(photo by Steve Carmody/Michigan Radio)

Michigan retailers say 4 dollar a gallon gasoline is taking a bite out of their business.  The latest survey by the Michigan Retailers Association says state businesses saw a marked decline in sales in March, as gasoline prices started to soar.    Michigan retail sales slumped to their lowest level since last July. 

Tom Scott is with the association.  

Read more
Politics
9:26 am
Tue April 26, 2011

In this morning's news...

user brother o'mara Flickr

State seeks concessions from unionized corrections workers

In these austere times, governments large and small are seeking to save money by getting union workers to reduce the benefits and/or wages.

The State of Michigan is seeking $95 million in concessions from those unionized employees who work in state prisons.

From the Associated Press:

The amount requested from the Michigan Corrections Organization represents more than half of the $180 million in concessions Gov. Rick Snyder wants from state employees in the budget year that starts Oct. 1, The Lansing State Journal reported Monday.

The union's members make up about 16 percent of the state's work force, but are being asked to make 53 percent of concessions. Michigan Corrections Organization executive director Mel Grieshaber criticized the state's actions.

"We are in sticker shock right now," he told the newspaper. "It's not fair. Our membership is angry about it. . . . It's very offensive. You won't find a more dangerous job in state government."

Kurt Weiss, A spokesman for the Office of the State Employer, the agency that oversees all collective bargaining negotiations for the state, said the Department of Corrections is the "only major state department in which employees are solely funded by the general fund," and Governor Snyder is trying to close a $1.4 billion dollar budget gap in the general fund.

Ford Motor Company has a solid first quarter

Ford announced is best first quarter earnings since 1998. According to the Detroit News, the first quarter earnings were...

$2.6 billion, or 61 cents per share.

The results, an increase of $466 million over the first quarter of 2010, far exceeded analysts' expectations of about 50 cents per share.

Operating profit of $2.8 billion was the strongest for a first-quarter since 2004 and $2.1 billion of that was from automotive operations as consumers continue to embrace the automaker's vehicles, which include new and fuel efficient models. Total revenue was $33.1 billion, up $5 billion from the same period in 2010.

"Our team delivered a great quarter, with solid growth and improvements in all regions," Chief Executive Alan Mulally said.

And unlike the gas price spike in 2008, Ford Motor Company and the other domestic automakers are much more prepared for the current price spike with more choices for smaller, fuel efficient cars... 

Michigan's average gas price above $4 per gallon

It hasn't happened since 2008. That was the year gas prices shot up and consumers started looking for smaller cars. AAA Michigan says the statewide average for gasoline is $4.04.

From the Associated Press:

The auto club says Tuesday that prices for self-serve unleaded fuel rose 6 cents per gallon since Monday to a statewide average of $4.04. That's $1.20 per gallon higher than last year at this time. AAA Michigan says the last time the average hit $4 was Sept. 19, 2008, when it was $4.03 per gallon.

Dearborn-based AAA Michigan surveys 2,800 Michigan gas stations daily. It typically releases its gas prices report each Monday. But the auto club says it decided to put out a special edition of its gas prices report Tuesday because the average topped $4 a gallon.

Auto/Economy
2:20 pm
Wed April 20, 2011

Another gas price hike coming?

Another increase in store at Michigan pumps?
user Orin Zebest Flickr

Gas prices in Michigan are expected to go higher, according to an online service that shares information on fuel prices. GasBuddy.com collects data on gasoline prices all across Michigan and the rest of the country.  The company says average gas prices in Michigan are about to jump up  to between $4.05 and $4.15 a gallon.

This from an e-mail sent out by Gasbuddy.com:

We're at increasing odds for a price hike. Oil prices have continued to rally this week, meaning it may be price hike time. With the rise in wholesale costs already being passed on to stations, odds are this hike will occur any time in the next 48 hours.

Patrick DeHaan, the senior petroleum analyst with Gas Buddy, says several factors, including refineries switching to summer blends of gasoline,  are behind rising gas prices. 

“Unfortunately, until these refineries get going and finish their maintenance and boost production…we will continue to see supply dwindle and that will continue to impact prices.”  

DeHaan predicts Michigan gasoline prices will continue to edge higher between now and Memorial Day.

The White House says speculators on Wall Street are driving oil prices up. President Obama made some remarks on speculation in Virginia accoring to UPI:

U.S. President Barack Obama, in a speech in Virginia, said it's not a lack of supply that is driving oil prices up on the commodity markets.

"The problem is, is that oil is sold on these world markets, and speculators and people make various bets, and they say, you know what, we think that maybe there's a 20 percent chance that something might happen in the Middle East that might disrupt oil supply, so we're going to bet that oil is going to go up real high," he said. "And that spikes up prices significantly."

In the article, Bart Chilton, a member of the U.S. Commodity Futures Trading Commission, says speculation makes up part of the price at the pump, "there is a Wall Street premium on gas prices today. Every time folks fill up their tanks, they can expect that several dollars are due to speculation."

Speculation was a big driver of the skyrocketing oil prices back in 2009.

Environment
2:03 pm
Mon April 18, 2011

Source of gasoline leak found

The spill occurred in White Oak Township (the location of the White Oak Township Hall is marked on this map).
Google Maps

Update 2:03 p.m.

Officials say the gasoline leak has been stopped. Still no word on how much fuel leaked from the storage tank.

From the Associated Press:

Officials say they've stopped a gasoline leak in Michigan and confirmed the source as a storage tank in the area.

Ingham County emergency officials said in a statement Monday that the tank and a related filling system in White Oak Township, about 55 miles west of Detroit, are owned by Marathon Pipe Line LLC.

A message seeking comment was left Monday by The Associated Press at Marathon's offices.

Wolverine Pipe Line Co., which also owns some tanks at the same storage site, has been working with the county on response to the leak since it was reported Wednesday.

The county says Marathon will take over work dealing with the leak from Wolverine. The amount of the spill remains unknown. There's no evidence of health hazards in the area.

9:07 a.m.

Authorities say they've found the source of the gasoline leak in Ingham County.

From the Associated Press:

Michigan authorities say they've traced a gasoline leak to the area of a storage tank holding 14,700 barrels of fuel. Ingham County Emergency officials said in a statement Sunday that they've found higher levels of spilled gasoline as their monitoring equipment approaches the Wolverine Pipeline Co. facility.

The large gasoline storage tank site is in White Oak Township, about 55 miles west of Detroit.

Some of the gas flowed about a mile down an open drain by the time a farmer reported the leak Wednesday.

The county says the suspected source of the leak is a tank that can hold up to 180,000 barrels of fuel. It says that while the amount of the spill remains unknown, it's nowhere near the capacity of the tank, which was mostly empty when the leak started.

Michigan Radio's Kyle Norris reported yesterday that officials from the Wolverine Pipeline Company were searching for the gasoline leak.

Economy
11:54 am
Mon April 18, 2011

Weather & fuel costs on the minds of Michigan farmers

Instead of snow, Michigan farmers would rather see something like this in thier fields
(photo by Steve Carmody/Michigan Radio)

It’s planting time for many Michigan farmers.  In addition to the weather, farmers are closely watching fuel prices this Spring.   

The price of fuel affects practically every aspect of farming in Michigan, from the cost of the diesel in the tractor to the price of the fertilizer on the fields.  Bob Boehm is the director of the commodities department for the Michigan Farm Bureau. He says fuel costs are between 7% to 15% of the average Michigan farm’s budget, but may be higher this year.  

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Environment
2:35 pm
Sun April 17, 2011

Source of Michigan gasoline leak still not known

Alaska pipeline
Flickr user nbonzey

The company that owns a pipeline that's leaking gasoline in Michigan is still searching for the source of the leak.   

Ingham County Emergency officials said in a statement Saturday that Wolverine Pipeline Company crews hope to find the leak within the next 24 hours and repair it. The Portage, Michigan-based company has contained the leak near a farm and a large gasoline storage tank facility about 55 miles west of Detroit.   

Some of the gas flowed about a mile down an open drain by the time the leak was reported Wednesday by a farmer. 

Crews continued digging temporary ditches Saturday near the storage tank to keep it out of the drain.   

Wolverine Pipeline says tests on wells in the area show that they pose no threat to human health.

Auto/Economy
1:54 pm
Mon April 11, 2011

What effect will rising gas prices have on Michiganders?

Robert Couse-Baker Flickr

If you seek rising gas prices, look about you.

Gas prices in Michigan have ticked up over the course of this past week, an increase of 11 cents, bringing the statewide average up to $3.86.

But what will the effect on Michigan drivers be?

Mantill Williams, a spokesperson for the American Public Transportation Authority, says there is a tipping point at which people begin to consider changing their driving habits.

From ABC News:

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