What drives gas prices? Understanding the complex factors
Gas prices are highly sensitive to changes in supply and demand. Natural disasters like hurricanes that disrupt oil production and refining, or sudden increases in demand, can cause sharp price spikes.
- Gas prices across Michigan are easing up — for now.
- Some of cheapest gasoline in the state is in Taylor.
Michigan gas prices are down 7 cents from a week ago, with drivers paying an average of $2.83 a gallon for regular unleaded, according to AAA, which tracks prices at stations nationwide.
“Gas prices across Michigan are easing up. Most drivers are seeing real drops at the pump,” Adrienne Woodland, a spokeswoman for AAA, said Monday, Feb. 9. She added that “even in places where prices are holding steady, that bit of consistency is still good news.”
But, one analyst warned, don’t get too used to the lower gas prices.
Motorists are now paying an average of $42 for a full 15-gallon tank of gasoline.
Some of cheapest gasoline in the state is in Taylor, with prices at $2.23 and $2.25 a gallon, according to GasBuddy, which also tracks gas prices and reports where they can be found.
By AAA’s count, the most expensive averages in Michigan are in Ann Arbor, at $2.95 a gallon; metro Detroit, $2.93; and Lansing, $2.80. The cheapest: Traverse City, $2.52; Grand Rapids, $2.67; and Saginaw, $2.73.
“Even though oil prices slipped slightly last week amid reduced geopolitical risk, strengthening seasonal factors are likely to intensify,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
Crude oil prices, West Texas Intermediate, are trading at about $63 a barrel.
De Haan, however, predicted the national average will be back above $3 a gallon.
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Gasbuddy reported that the lowest-priced gas at the pump was at a Sunoco on Telegraph in Taylor, an SNK, on 14 Mile in Fraser, and a Marathon, also on Telegraph, also in Taylor, with prices of $2.23, $2.25 and $2.25 a gallon.
Low prices could also be found on the west side of the state in Muskegon at Marathon on Sherman Boulevard, a Sam’s Club on the same road, at $2.26 a gallon, and in nearby Norton Shores at a Costco on Harvey Street, $2.34.
Among states with weekly gas price changes, GasBuddy, which calculates its gas prices differently than AAA, found Michigan had the biggest drop, beating Oklahoma, while California had the largest increase, followed by Illinois and Iowa.
“Most states saw relatively minor fluctuations,” he said. “But we’re now starting to see seasonal trends take hold on the West Coast, with those pressures expected to gradually push eastward in the weeks ahead.”
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com
