Michigan
Experts reveal where Michigan’s gas comes from and why pump prices continue to rise
LANSING, Mich. — No matter where Michiganders go, they’re paying more to fill up, but experts say there’s a lot that goes into those rising prices.
According to AAA, Michigan’s gas price average hit $4.01 on Tuesday, which is about $1.10 higher than a month ago.
The prices echo what’s being paid for crude oil, which sits just below $100 a barrel.
That’s being driven by the war in Iran and the closure of the Strait of Hormuz, a key transit point for the world’s oil.
But what Michigan drivers are putting in their car isn’t impacted by that, at least not when it comes to transportation of the oil used in domestic gasoline.
“You have some oil coming from Canada, you have oil coming from literally out in the middle of the Gulf of America, as we call it today, coming up from Texas, it comes on pipelines from out west, from the Dakotas.,” Michigan Petroleum Association President Mark Griffin said.
The U.S. is a net exporter of oil, meaning it produces more than it uses, but even with a large domestic supply, high prices are the result of basic economics.
“It’s much like if you were to buy a share of stock from a company today at a hundred bucks and we find out tomorrow that they’re the only source for this widget that we all have to have and their stock rises up to $200,” Griffin said. “The company did nothing unique on that day, but their stock went up and now it’s worth more. That same thing happens to us with crude oil.”
Griffin, who also represents convenience store owners, says there’s not much gas stations can do.
“The typical gas station, about 70% of their gross sales is motor fuel, but it’s only 30% of their profit,” he said. “Retailers have to adjust their prices first to be able to pay for replacement costs. If you’re buying 10,000 gallons at a time and the price goes up 50, 70 cents a gallon, like we’ve seen, you have to raise your prices now to be able to afford that next load or you’ll go out of business.”
Other pressures facing fuel include the annual switch to the summer blend of gas that can temporarily lower supply and boost prices.
Michigan’s gas tax structure also changed this year, leading to a price increase, according to Griffin.
To stay competitive, Griffin says many gas stations do try to sell below cost, hoping to ease the burden and bring customers in.
“Our in-store sales go down because people literally just don’t have the money in their pocket to spend inside the store,” he said. “That’s one reason why we would much rather see these costs go down.”
So, there’s not much drivers can do to escape the high prices, but AAA has tips.
“Now is a really good time for drivers to consider shopping around,” AAA Michigan Spokesperson Adrienne Woodland said. “They may want consider paying cash for gasoline. Some retailers charge more if you use a credit card. Now is also a great time for drivers to enroll in fuel reward savings programs”
Otherwise, both Griffin and Woodland believe gas prices will remain volatile alongside oil prices, so it’s not clear whether they will come down any time soon.
Michigan
Search for Lynette Hooker reopened after Michigan woman disappeared in Bahamas
Search for missing Michigan woman Lynette Hooker reopened
The search for missing Lynette Hooker has been reopened. Hooker, who is from Michigan, was with her husband in the Bahamas when he claims she fell off a boat. However, new location data from his cell phone contradicts the story he gave authorities.
(FOX 2) – The search for a missing Michigan in the Bahamas has been reopened after authorities say her husband allegedly gave police false information.
Lynette Hooker and her husband Brian were boating in the Bahamas in early April when, according to her husband, she fell off the boat and was swept to sea. Brian told police he had to paddle to shore after Lynette fell into the water because she had the key.
Brian was taken into custody in the Bahamas after Lynette’s disappearance, but was later released and returned back to Michigan.
Recently, it was revealed that new location data from Brian’s cell phone contradicts the story he gave to authorities, and suggests he may have sent search crews to the wrong area. This new information has led to the U.S. Coast Guard reopening its search for Lynette.
The Source: Previous reporting and information from FOX News were used in this story.
Michigan
Fifth Third Bank to close 75 Michigan branches, including former Comerica locations
Fifth Third Bank said it has finalized its list of Michigan branch closures this summer, confirming that 75 locations will shut down in September as part of an ongoing effort to streamline its retail network.
Of the branches closing, 55 are former Comerica Bank locations, and 20 are existing Fifth Third branches.
The bank said most of the affected locations have another Fifth Third branch within one mile.
After the closures, Fifth Third said it will operate 227 branches across Michigan, including 116 in the five-county Metro Detroit area.
In a statement, Fifth Third said it is “building a stronger, more efficient branch network that supports customers today and positions the Bank for long-term sustainable growth in Michigan and across our expanded footprint.
The bank said it will continue serving Michigan through 227 financial centers across 39 counties and nearly 140 communities.
It added that while it is consolidating overlapping branches, most of the affected locations have another Fifth Third financial center within one mile.
After the customer conversion later this year, Fifth Third said Michigan customers will have access to approximately 42% more branches, while former Comerica customers will have access to about 60% more branches than before.
In southeast Michigan, Fifth Third’s post-conversion network is expected to be the largest in the five-county region of Livingston, Macomb, Oakland, Washtenaw, and Wayne counties, with 116 financial centers.
In Detroit, the bank said it will operate 19 locations, making it the largest banking network in the city following the conversion.
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Michigan
Gasoline prices drop nationwide, but relief may be temporary
President Trump not worried Iran will hurt GOP midterm chances
President Donald Trump said he isn’t worried about the 2026 midterm elections as effects of the war in Iran threaten to hurt Republican chances.
Gasoline prices fell nationwide and, in a few states, even dropped below $4 a gallon, which one petroleum analyst said was a sign of “growing optimism surrounding a potential U.S.-Iran agreement,” but even as fuel prices dropped, there are now new concerns.
In Michigan, gasoline dropped to $4.35 a gallon on Monday, June 1, according to AAA, while crude oil prices — the primary factor in fuel costs — started edging up, which could make it harder to reach a peace deal that would reopen the Strait of Hormuz.
Crude oil prices rose after the United States and Iran each launched new strikes.
“Michigan drivers are getting some relief at the pump,” said Adrienne Woodland, a spokeswoman for AAA. “While the drop is welcome as we head into the busy summer travel season, fuel prices remain volatile and could shift again quickly.”
Higher fuel prices are causing some motorists to rethink how they shop for gas and are likely affecting other spending habits as well, such as cutting back on eating out.
One oil company executive also warned about how low oil inventories are getting.
Patrick De Haan, head of petroleum analysis at GasBuddy, said average gasoline prices declined in all 50 states over the last week, and were below $4 a gallon in 15 states, “offering motorists some of the most widespread relief seen in weeks.”
De Haan said much of the decline came from growing optimism for a deal.
Renewed attacks spark uncertainty
The average price of regular unleaded gasoline in Michigan dropped on Monday by 28 cents from a week ago, according to AAA. But it was still significantly higher than before the war in the Middle East.
Throughout the state, the most expensive gas price averages were in Traverse City, $4.48 a gallon; Ann Arbor, $4.43; and Benton Harbor, $4.42; the least were in Flint, $4.15; Lansing, $4.19; and Marquette, $4.22.
A year ago, regular unleaded gasoline in Michigan was $3.08 a gallon.
Diesel prices, $5.84 a gallon in Michigan, also fell.
“However,” De Haan said, “the coast is anything but clear. Oil prices edged higher Sunday evening as uncertainty surrounding a potential deal persisted and renewed Israeli attacks added another layer of geopolitical risk.”
He added that motorists “may continue to see some short-term relief,” they also may “soon experience another upward swing as retailers run out of room to lower prices further. Overall, any setback in negotiations could quickly reverse the recent decline in fuel prices.”
In addition to the rising oil prices, there are now indications that the price of gasoline could go higher again with increased demand during the summer travel season and more Mideast conflict.
Mitigating pain at the pump
Michigan motorists are now paying about $66 for a full 15-gallon tank of gasoline, with some even telling the Free Press during the past few weeks that to mitigate the pain at the pump, they’ve stopped filling up all the way.
Instead, they said they are making more frequent stops and shopping around.
Costco — the membership-only, warehouse club retail chain that tends to sell lower-priced gas — said during its recent quarterly earnings report that it is seeing record demand for gasoline.
It has been so overwhelmed, CNN reported, that tanker trucks are refilling stations multiple times a day.
On top of that, according to a Reuters report, several U.S. restaurant chains such as Wingstop and Domino’s have reported “weaker-than-expected sales growth” in the latest quarter, saying that high gas prices are leading their customers to cut back.
The report added that “analysts expect other restaurant chains also will show declining sales growth.”
And one oil company senior executive warned last week that global oil inventories are approaching record lows, which he said, potentially could cause oil prices — and then gasoline prices — to suddenly increase in two or three weeks.
ExxonMobil senior vice president Neil Chapman spoke at a conference on Thursday in New York, and, according to CNBC, cautioned that “we’re approaching unheard of inventory levels,” what he referred to as “really, really low levels.”
He added: “Once you get to that point, then you’ll see the price shoot up.”
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com
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