My benchmark station in Indiana that is provided gasoline by the same
refiner we are jumped from 3.38 to 3.58 today. We jumped from around
3.38 to 3.65. As I’ve told you before, this station is usually much
cheaper than Grand Rapids is.
Are we in store for a hike yet again to $3.75? I’m not sure. Wholesale
prices went way down today, and prices for gasoline supplied via
pipeline plunged (Grand Rapids is serviced by the Wolverine Pipeline
from down south which also ships gasoline via Muskegon and
Holland, our major racks.) The pipeline prices fell 13-15 cents today.
This makes calling another hike very difficult.
I was looking at CaliforniaGasPrices.com and noticed that Grand Rapids
is just cents away from the HIGHEST prices in California, and any hike
will likely take us to the top.
Also, according to GasBuddy.com, Michigan has the highest average in
the 50 states- $3.535. Indiana and Illinois follow, but are “only” at
$3.47 and $3.45, respectively.
When will it end?
Not just yet, but I still don’t see $4 gas being a reality here.
Are these prices gouging?
No, wholesale prices have climbed.
Why are prices so high?
As I’ve said before its because Michigan’s gasoline demand is so high
yet and we have but one refinery serving us. A major refinery that
serves Grand Rapids is only operating at 50%. States like Indiana have
lower demand (lower population) and have more refineries.
So, a hike is POSSIBLE, but odds are only 60/40 for $3.75.
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