Michigan is usually nowhere near the top of the list when it comes to low gas prices, but for some reason, we have the lowest average gas prices in the country, right here in Grand Rapids!

Grand Rapids, Flint and Kalamazoo have the the three lowest average gas prices all across the fruited plain. It just makes no sense. We are nowhere near gas producers, we have high taxes, and other assorted reasons.

"Of course, Michigan cities, like all cities, benefit from oil prices that are the lowest in over five years. The price per barrel has dropped to $52. That is down from $100 in June. And the price pressure is downward, not up. U.S. frackers and Saudi Arabia appear to be in a price war. Russia claims it will continue its output. Nations like Mexico, Brazil and Venezuela may have no choice. Better to get some revenue than none, even if each barrel taken out of the ground loses money from the drillers.

In Michigan, the state with the sixth highest gas tax, it is $0.39. (New York’s is highest at $0.50 per gallon, and it has the third highest average price per gallon among all states at $2.75.)

The low price of gasoline in the three Michigan cities remains a mystery, at least to the local press. According to the Detroit Free Press, one of the state’s largest papers:

“Gas prices continue to drop due to a significant decline in crude oil costs,” auto club spokeswoman Susan Hiltz said. “Crude oil represents about two-thirds of the cost of gasoline and is directly correlated with changes in gas prices.”

Yep, certainly makes sense to me. Not really. But who is complaining?


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