Cedar Springs and the greater Grand Rapids area saw gas prices rise to $3.49 early this week, while drivers in 18 other states saw gas prices fall to below $3/gallon.
So why is gas rising here while falling in other states? According to Patrick DeHaan, senior petroleum analyst of GasBuddy.com, the Great Lakes is a volatile and competitive region. “Gas stations started selling gas under cost. They lose 5 or 10-cents a gallon over the course of a week or two, and then need to restore the price,” he explained. “Then the competition starts again, and prices start to go back down.” He said this strange price cycling has been going on since 2000.
He believes that by Thanksgiving we might see prices under $3. He said we could tell prices are on a downward trend, because each time they go up, it’s not as high. “This time it was $3.49, last time it was $3.59, and the time before that it was $3.65.”
Some parts of Michigan already have gas prices hovering around $3.10-$3.15.