Midwest Drivers to Modify Behavior with $4 Gasoline Prices

About one in six motorists are annoyed of the high gas prices today. As such, these motorists have expressed that they will make drastic behavior changes to save some extra bucks since metro Detroit’s current gasoline prices are closer to $4 per gallon.

One out of four drivers surveyed has said that they will modify their behavior as soon as gasoline prices reach at least $4 per gallon.

GasBuddy.com said that the gas price today in several areas, especially in the southeastern part of Michigan, have already reached the psychologically critical $4 mark. In fact, some stations in that area charge $4.29 per gallon for regular gas.

A recently released Consumer Pulse survey from the AAA shows that drivers will consolidate their errands and reduce their discretionary expenses which are not good signs for local economies that are almost falling off the edge.

Gasoline costs in metro Detroit and the Midwest have recently increased by an average of about 21 cents due to pipeline and refinery problems in the region. GasBuddy.com’s senior petroleum analyst, Mr. Patrick DeHaan, said that the average of the latest fuel prices were higher by an additional 8 cents.

DeHaan forecasted the gas price today to slightly increase from $3.95 per gallon. He expects it to stay at that level for at least two weeks then drop to within the $3.60 to $3.70 range.

The increases in the current gasoline prices are due to the shutting down of a pipeline that transports crude originating from Canada to Chicago in addition to malfunctions at northwest Indiana’s BP refinery, Lemont’s Citgo refinery and Wood River’s Philips 66 refinery, said DeHaan.

Michigan, Indiana, Ohio, Illinois, Wisconsin and Kentucky are the areas most heavily affected by these problems.

The current gasoline price average in Michigan is $3.82 per gallon, a rate that is higher by 29 cents compared to the nationwide average, according to the Daily Fuel Gauge Report of the AAA.

Metro Detroit’s average gas price today is 4 cents more than the past day and 21 cents more than last week at $3.86 per gallon.

The Midwest is the one bearing all its effects, said Nancy Cain, the spokeswoman of Michigan’s AAA. Cain is hoping for the situation to be temporary but it is unfortunate that multiple issues are all happening at the same time.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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