A full explanation of why lumber prices have increased, and what you can do to work around the dramatic increase in the industry. Currently, consumers are asking questions about  gas prices. Crude oil prices are surging. Taxes on diesel have gone up too, going from 14 cents a gallon to 26.3 cents. Products; Process; Products Menu Toggle. In addition to what the REAL reason is for fluctuating gas prices.   63 per gallon. Why Isn't That Price Fixing? Gas prices are fluid due to the situation in Saudi Arabia, Woodland said. A $1 increase in crude oil prices translates to about 2.38 cents in consumer gas prices, Woodland said. Given all this, Americans are driving less and thus using less gas, not more. When the oil supply falls, prices go up because all the people who want oil are competing for a smaller amount. Michigan gas prices, which have declined over the last month, are shooting back up this week due to weekend attacks on Saudi Arabian oil facilities. In anticipation of such a crisis, oil traders bid up the price, which reached $118.90 a barrel on February 8. Traverse City went from an average of $2.35 per gallon Monday to $2.52 Tuesday; Flint's average jumped from $2.46 Monday to $2.61 Tuesday. Gas prices have gone up in Michigan now that the state tax on gas jumped from 19 cents to 26.3 cents per gallon. Gas prices in Michigan declined slightly after setting a new 2021-high of $2.82 per gallon last week. In this rare case, they are not entirely the cause. All told, there are numerous factors that affect both the historical upward trend in gasoline prices and the daily fluctuations we experience.   Gas prices soon followed, rising to $3.78 a gallon by February 25. The price is still $1.40 less than what we were paying a year ago, and lower than this time last month by 12¢. Michigan gas prices, which have declined over the last month, are shooting back up this week due to weekend attacks on Saudi Arabian oil facilities. I admit, I don't know too much about what exactly drives gas prices; however, it irks me that prices continue to go up while the oil companies post billions of dollars in profits every quarter. © 2021 www.freep.com. Skip to content. Retailers in similar geographic areas often price match, therefore, the cost of gasoline appears to rise or fall at the same time. The Real Story of Manufacturer's Suggested Retail Prices, Prescription Drugs - How To Safely Save Money, Michigan Department of Attorney General Written Public Summary of the Department's Freedom of Information Act Procedures and Guidelines, Michigan Department of Attorney General But after drone attacks on a Saudi Arabian oil processing facility and oilfield Saturday, the price of crude oil — and thus, gas — has gone up across the nation. Answer:  Retailers are free to independently determine what they should charge for gasoline. Residents of Bay City, Michigan, saw gas prices soar to $2.32 a gallon Wednesday from $2.04 the day before, according to GasBuddy.com. The pipeline is NOT detined to remain in this country any way. While national average prices only rose by 3 cents from Monday to Tuesday, average Michigan gas prices went up 9 cents — from $2.55 per gallon to $2.64 — in that time, according to AAA. Since Monday, the national average for a gallon of regular gasoline has stayed at $2.88. FACT CHECK: Here's why gas prices are going up in Michigan and around the country Steven Senne/AP Jeremy Heskett, of Boston, pours gasoline at a Shell gas … This is one of many steps that have been undertaken to monitor these markets and prevent unwarranted high prices. Since Election Day, gas and crude oil prices have jumped. Grand Rapids Gas Prices provided by GasBuddy.com Click here to add this map to your website. The Attorney General's office constantly monitors gas prices to protect consumers from price fixing and price gouging. Gas Prices Inch Up To Reach Same Seasonal Price As 2019 By GasBuddy | April 26, 2021 The nation’s average price of gasoline is again on the rise, posting a slight 0.4 cent per gallon rise from a week ago to $2.87 per gallon today according to GasBuddy data compiled from more than 11 million individual price reports covering over 150,000… This week's Michigan gas prices aren't drastically different from last week's, Woodland said — on average, the state is only up 2 cents from a week ago. Denise Donahue is the director of the County Road Association of Michigan. If demand and production return to normal this summer, though, he expects gas prices could be 35-75 cents lower than the peak price one year ago of $2.84. As with gasoline, the price of crude oil tanked last spring as COVID-19 … And that’s why, despite the … April 29, 2021. The lockdowns caused the roads to empty, leading demand for gasoline to collapse, and even led to a strange occasion in June when the price of oil futures went negative. These "motor fuel taxes" don't include the state’s 6% sales tax, or the federal tax of 18.4 cents per gallon. Prices also rise when demand goes up — that is, when there are more people competing for the oil that’s available. Historically, gas retailers (i.e. Answer:  Attorney General Nessel is concerned about the effect that high gas prices in Michigan have on the consumer, the State's tourism industry, and the overall health of the state economy. Oil barons and desire for more profit by the major Oil companies is why prices go up. Patrick DeHaan from GasBuddy. The investigation led to four guilty pleas and one no contest plea by five … Michigan prices were on the decline over the last month following a decrease in demand that usually happens this time of year, said AAA spokesperson Adrienne Woodland. Additionally, given the national scope of this issue and its impact on the U.S. economy, the various federal agencies that have oversight and enforcement authority in this area, as well as your representatives in Congress, continue to watch the issue closely and formulate responses. So why are prices rising? Oil prices are generally the culprit when gas prices rise. Here are the real reasons. I understand companies need to make a profit to survive but when Exxon is posting an $11 billion profit for the first quarter while gas is over $4/gallon, I think that's just ridiculous. corner gas station owners) have not appeared to profit from high prices. Florida saw the biggest jump in prices. Over the last few years, gasoline prices in the State of Michigan have fluctuated dramatically, and the Attorney General has taken action when circumstances warrant action. Answer: Attorney General Nessel remains committed to fighting higher gasoline prices when those price increases violate the law. AAA Michigan says average gas prices statewide have dropped about 12 cents from a week ago at about $2. The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern. The diesel tax is increasing by 11 cents. The prices we pay at the pump reflect these costs, as well as the profits (or losses) of refiners, marketers, distributors, and retail station owners. In the United States, gas prices are up 18% and oil nearly 50%. Rising oil prices are another factor for higher gas prices. FLINT, Mich - Have you noticed gas prices in Michigan seem to go up and down like a rollercoaster? … As with gasoline, the price of crude oil tanked last spring as COVID-19 … “The expected decline in 2021 is the result of rising natural gas prices that will reduce demand for natural gas in the electric power sector,” researchers said. {} Patrick DeHaan from GasBuddy. Question:  What can the Attorney General's Office do to promote price competition in the gasoline industry and protect consumers? Answer:  Many factors affect the cost of gasoline, including the cost of crude oil, refinery processing, transportation, distribution, marketing, operating expenses, retail station operations, and taxes. Efforts to monitor these factors continue in this office. Read here for the latest news on gas prices, including information on how gas is priced near you, the oil industry, market trends, and more. For example, in 2011 the Michigan Attorney General investigated several gasoline stations in the Madison Heights area that were suspected of price fixing. The increase will give Michigan the 5th highest gas tax in the nation. The increase helped to limit pump price… The tax increase, along with state auto fees, will help fund desperately needed road repair and improvements across the state. Menu Menu. Without proof of an actual, explicit agreement, the fact that stations match each other's price increases is not illegal. Gas prices are going higher. Some communities nationally have seen price spikes as high as 22 or 23 cents, Woodland said. This consumer alert addresses commonly asked questions and discusses the role of the Michigan Department of Attorney General in investigating gas-pricing issues. Birmingham hires 5 lawyers to fight controversial free-speech lawsuit, Ferndale becomes second city in Oakland County to say 'yes' to medical pot business. Instead, high profits have been extracted by refiners and producers farther up the supply chain. Custom Floor Plan Design Options; The Lone Peak; Gallery; Why TBS Menu Toggle. She says it’s important for motorists to see the money being used to fix … "Where we go … Crude oil prices are surging. In mid-2014, when the price of crude oil plummeted to less than $50 per barrel, gas prices tumbled to less than $2 per gallon. Similarly, when supply rises or demand falls, prices go … In the fall the price of an oil barrel was $35. Question:  Why do gas prices keep fluctuating? 08 March 2021 AAA: Michigan Gas Prices Drop 4 Cents From Last Week If you become aware of direct evidence of a conspiracy between companies, or have verifiable evidence of a retailer charging a price "grossly in excess of the price at which similar property or services are sold," please contact the Attorney General's Consumer Protection Division: Building Construction & Licensing Complaints, What You Need to Know About the Equifax Breach, Auto Title Loans: Put the Brakes on Before You Get Caught in a Cycle of Debt or Lose Your Car, International Sweepstakes & Lottery Fraud, Michigan's Scanner Law - The Shopping Reform and Modernization Act, Embezzlement Prevention for Small Organizations, Hey! For example, Congress enacted the Energy Independence and Security Act, which gave the Federal Trade Commission authority to police market manipulation in the petroleum industry. In some circumstances, the Attorney General may investigate retailers for "price gouging,"  which, under the Consumer Protection Act, occurs when a retailer charges a price that is "grossly in excess of the price at which similar property or services are sold." However, numerous court decisions have held that gas station retailers may respond to the price changes of other retailers by unilaterally "matching" their price changes. Isn't this price fixing? All five defendants and their associated stations entered pleas to violations of the Michigan Antitrust Reform Act (MARA) and agreed to pay substantial fines. What drives crude prices themselves is largely basic supply and demand. Over the last few years, gasoline prices in the State of Michigan have fluctuated dramatically, and the Attorney General has taken action when circumstances warrant action. drone attacks on a Saudi Arabian oil processing facility and oilfield, track your city's price averages with AAA, find the cheapest gas in your city using GasBuddy, Your California Privacy Rights / Privacy Policy. While gas prices in Michigan have been trending down in the past couple of weeks, an analyst is warning of an impending jump in prices on Wednesday, May 29. Answer:  The Attorney General's Office daily reviews retail profit margins and actual cost of providing gasoline products to consumers throughout the State of Michigan. In the last week, 41 states saw gas prices go up, with the national average price per gallon up 24 cents for regular unleaded gas at $2.54, according to AAA. To protect competition in the marketplace, the Attorney General can take action under various antitrust laws. Michigan. Other unknowns include whether oil production globally will … For example, in 2011 the Michigan Attorney General investigated several gasoline stations in the Madison Heights area that were suspected of price fixing. But of late, gas prices have begun to creep up again, from $2.25 on December 21, all the way up to $2.38 on January 19. Question:  What if all of the gas stations in a certain geographic area raise their prices by the exact same amount on the same day? Freedom of Information Act Procedures and Guidelines. A big reason the cost of crude is going up is that the world's oil-rich countries have been pumping less of the stuff. If they explicitly agree together to raise or lower prices, such an agreement is illegal under state and federal antitrust law. Other factors that have also historically affected gas prices include: (1) increasing demand, (2) a historical drop in U.S. refinery capacity, (3) a downward trend in how much gasoline is held in inventory, and (4) regulatory factors. It comes down to one thing: hope. Search for cheap gas prices in Michigan, Michigan; find local Michigan gas prices & gas stations with the best fuel prices. Servicing Nationwide: (866) 887-9433. GRAND RAPIDS, Mich. — When I got wind of a hike in gas prices Tuesday, I checked my GasBuddy app: one station, at US-131 and West River Drive, had jumped to $2.19, while the typical price … Consumer Alerts are not legal advice, legal authority, or a binding legal opinion from the Department of Attorney General. Not Logged In Log In Sign Up Points Leaders 12:01 AM. Experts say the recent cold weather in the south will affect gas and oil prices only temporarily. According to new data from the Energy Information Administration, total domestic gasoline stocks increased by 100,000 bbl to 235.1 million bbl last week. These prices rose again in August 2013 as oil prices hit a 15-month high that summer. The Attorney General believes that the key to protecting consumers in Michigan is the promotion of healthy, vigorous competition among as many different petroleum refiners, marketers, and retailers as possible. All rights reserved. The investigation led to four guilty pleas and one no contest plea by five Madison Heights gas station owner/operators. Now the price is up to $60. Crude has only increased modestly from $57.26 a barrel three weeks ago to $58.87. Looking at the long term, the biggest reason prices are on the rise again is because more people are eager to travel. Lowest Gas Prices in Grand Rapids Grand Rapids Gas Prices provided by GasBuddy.com For the first time in nine weeks, Triple-A Michigan says the statewide average per gallon has risen, up 11¢ to $1.53. No, Biden isn’t to blame for higher gas prices, analysts say. com says roller coaster like gas prices are common for Michigan… Saudi Arabia's energy minister recently told CNBC he's "leaning toward" holding down oil production through the end of the year. You can track your city's price averages with AAA, or find the cheapest gas in your city using GasBuddy. AAA can't predict where prices will go next but it is watching both crude oil prices and how long it takes to get the Saudi Arabia facilities functional again. Average prices are also down from a month ago, and down 27 cents from this time last year. While many unknowns remain about what factors may impact gas prices in 2021, the largest likely factor driving gas prices in the year ahead will be COVID-19, and whether there is a broad recovery after the severe shutdowns and restrictions that sunk gasoline demand and prompted Americans to work and learn from home. According to GasBuddy, the price of gas has already been impacted as millions of barrels of refining capacity have gone offline due to the extreme cold in the South. While most Michigan cities haven't seen price jumps that drastic, some have seen average increases above 9 cents. That spike was created by political unrest in Egypt. It is for CANADAS Oil barons and will be sold on the open market, which usually means Europe and other places, NOT the US. However, as experience has demonstrated, there are always a myriad of factors that contribute to the price we pay for gasoline. Question:  What should I do if I feel there has been price fixing or gas gouging? Gas spending and prices by state Iran, which is locked in a bitter dispute with the West over its nuclear program, exports 2.2 million barrels of oil a day, mostly to Asia. The stations involved in the price-fixing operation were all located within two miles of each other, and an investigation by our office revealed the details of the price-fixing scheme, which involved the five stations setting their gasoline prices at an artificial level, within a penny or two of each other in an attempt to increase profits from gasoline sales by eliminating competition. However, price swings of 30 - 40 cents per gallon have been common in the past due to international events, natural disasters, industrial accidents at refineries, and other causes, and such price movement does not by itself establish grossly excessive pricing under the statute. 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