Tagged: gasoline

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.

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.

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.

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.  

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.

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:

The average cost of gas in Michigan is $3.86. That’s nearly $1.00 more than it was this time last year.

Nancy Cain is a spokesperson for Triple-A Michigan. She says generally prices don’t go up this much so early into spring, "but this is our 8th weekly increase, and we’re seeing prices just going up."

Cain says the price at the pump follows the crude oil price, which she says is "topping $111-$112 a barrel. So that’s up to a 2.5-year high."