Michigan gas prices started edging up again — to more than $4 a gallon — heading into that holiday at the end of the week, even after the president accused big oil companies of oil “gouging” Americans.
The average price at the pump in the state on Monday, June 29, was $4.08 a gallon, down almost 40 cents from a month ago, as crude oil prices ease, but up 8 cents from a week ago, and 82 cents more than a year ago, according to AAA.
“Michigan drivers are seeing higher gas prices as we head into a busy Fourth of July travel week,” Adrienne Woodland, a spokeswoman for AAA, said, adding that “planning ahead can help travelers manage fuel costs.”
Motorists were now paying about $62 to fill up a 15-gallon tank.
But cost-conscious travelers can check gas-price tracking apps and loyalty discounts from credit cards and other reward programs to find cheaper gas and get cents off per gallon while on the road.
And one gas station in Michigan, near Metro Airport in Romulus, got some unwanted attention earlier this month when the state attorney general announced — again — that it is under investigation for high prices.
At the same time, the national average is $3.86 a gallon, with GasBuddy, which also tracks prices, pointing out that elsewhere “drivers haven’t seen gas this cheap since March,” with gasoline prices falling in most states.
“The declines came despite a turbulent week,: Patrick De Haan, head of petroleum analysis at GasBuddy said, noting “fresh attacks were traded between the U.S. and Iran before both sides agreed to halt hostilities just in time Sunday, preventing what could have been a significant spike in oil prices.”
His prediction: The national average will continue drifting lower this week.
Why gas prices are higher
An increase in demand for fuel as folks get ready to travel for the long holiday weekend is one reason why gas prices are moving higher. When there’s more demand for a limited supply of something, that tends to raise prices.
Despite higher gas prices, Fourth of July travel is expected to be robust this year, with AAA predicting more than 2.68 million Michiganders will go at least 50 miles away from home.
That could be a new record.
Last year, gas was selling at $3.17 a gallon on Independence Day.
For those traveling in Michigan, here’s a rundown of the highest and lowest averages on Sunday: Highest: Ann Arbor, $4.16; metro Detroit, $4.14; and Jackson, $4.12. Lowest: Marquette, $3.72; Traverse City, $3.98; and Flint, $4.04.
Another reason why gas prices are up is that oil prices edged higher on Monday as the uneasy cease-fire between the United States and Iran holds and negotiations seem to be on, then off, then on again.
Ships are cautiously attempting to navigate the Strait of Hormuz and crude oil — which makes up much of the price of gas — was trading in the high $60s and low $70s a barrel.
Claims of inflated gas prices
As for price gouging on gas, claims are difficult to prove in court.
In Michigan, the state has been investigating the Romulus station for years without prosecuting it, and with the mid-term elections approaching, it may be difficult to sort out whether gouging allegations are real or political posturing.
President Donald Trump said on Wednesday, June 24, that he asked the Department of Justice to look into why oil companies were not lowering gasoline pump prices in line with what he said were falling crude costs.
The administration posted a video clip on social media in which Trump named U.S. oil producers Exxon Mobil and Chevron, among others, that he suggested should be part of the probe.
The president said, “The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” adding that “those prices are dropping like a rock! In other words, customers are being “gouged.”
Reuters reported, however, that a spokesperson for the American Petroleum Institute, a trade group representing oil producers, said that “gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption.”
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com
This article originally appeared on Detroit Free Press: Michigan gas prices up ahead of Fourth of July, but expected to fall
Reporting by Frank Witsil, Detroit Free Press / Detroit Free Press
USA TODAY Network via Reuters Connect
By Frank Witsil, Detroit Free Press | USA TODAY Network
