Oil’s rise, refinery snags fuel the West Coast city’s prices to highest yet

Press release from Gasbuddy.com
BOSTON (March 22, 2022) — Los Angeles, today, became the first major city in the U.S. to reach an average gas price of $6 or more, according to GasBuddy, the leading fuel savings platform saving North American drivers the most money on gas. The national average gas price in the U.S. has begun to decline since its peak of $4.35 per gallon, set on March 10, but prices on the West Coast, and specifically California, have continued to soar.
This milestone was reached largely due to rebounding oil prices because of the ongoing Russian war on Ukraine but recent refinery kinks in Southern California amidst a rise in seasonal demand has pushed Los Angeles over the top. California also typically has some of the highest gas prices in the country because of its high gas taxes and its cap and trade program, which assess a premium based on emissions. Statewide, California’s average gas price is now $5.85 per gallon.
“In less than three weeks, the average price of gasoline in Los Angeles has surged by an average of $1 per gallon, blowing past $5 and now reaching $6 per gallon on refinery issues and Russia’s war on Ukraine,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While I’m hopeful we won’t go much beyond this, there’s not much light at the end of the tunnel for now.”
Another potential headache could be developing: refinery workers at a Chevron refinery recently went on strike, pushing the refiner to find replacement workers in the interim. After, a flaring event occurred, indicating a potential problem at the facility. The current $6 per gallon prices have happened because of a culmination of many issues, but could worsen if more issues develop before others are solved.
GasBuddy recommends drivers in the Los Angeles area always compare gas prices before filling up to save money.

Grand Rapids gas prices have fallen 14.4 cents per gallon in the past week, averaging $2.46/g Tuesday, September 3, according to GasBuddy’s daily survey of 246 stations. Gas prices in Grand Rapids are 21.6 cents per gallon lower than a month ago, yet stand 30.5 cents per gallon lower than a year ago.

According to GasBuddy price reports, the cheapest station in Grand Rapids is priced at $2.22/g while the most expensive is $2.69/g, a difference of 47.0 cents per gallon. Gas in Cedar Springs is also at $2.69/g.

The lowest price in the state t is $2.16/g while the highest is $4.39/g, a difference of $2.23/g. The cheapest price in the entire country today stands at $1.61/g while the most expensive is $4.99/g, a difference of $3.38/g. 

The national average price of gasoline has fallen 1.9 cents per gallon in the last week, averaging $2.56/g today. The national average is down 14.6 cents per gallon from a month ago, yet stands 26.1 cents per gallon lower than a year ago.

Historical gasoline prices in Grand Rapids and the national average going back a decade:

September 3, 2018: $2.76/g (U.S. Average: $2.82/g)

September 3, 2017: $2.59/g (U.S. Average: $2.63/g)

September 3, 2016: $2.22/g (U.S. Average: $2.20/g)

September 3, 2015: $2.48/g (U.S. Average: $2.43/g)

September 3, 2014: $3.52/g (U.S. Average: $3.43/g)

September 3, 2013: $3.73/g (U.S. Average: $3.58/g)

September 3, 2012: $3.95/g (U.S. Average: $3.83/g)

September 3, 2011: $3.83/g (U.S. Average: $3.66/g)

September 3, 2010: $2.73/g (U.S. Average: $2.66/g)

September 3, 2009: $2.48/g (U.S. Average: $2.57/g) 

Neighboring areas and their current gas prices:

Kalamazoo- $2.34/g, down 14.5 cents per gallon from last week’s $2.48/g.

Lansing- $2.52/g, down 11.2 cents per gallon from last week’s $2.63/g.

South Bend- $2.37/g, down 6.2 cents per gallon from last week’s $2.44/g.

“With last week’s decline in the national average, the tally now stands at seven straight weeks of decline, and heading into the fall, its nearly guaranteed that gas prices will continue to fall as we switch back to cheaper winter gasoline and demand plummets, especially as Hurricane Dorian shuts down the Southeast,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “While a China/U.S. trade deal could undermine the normal seasonal decline in prices that we anticipate, its still nearly guaranteed that average gas prices in nearly every state will stand lower on Thanksgiving and Christmas versus where we stand today. With the changeover to winter gasoline just two weeks away for a bulk of the country, we believe there will be additional drops in gas prices ahead.  For those concerned about pricing impacts from Hurricane Dorian, we remind motorists that not all hurricanes impact prices- in fact few truly leave a mark- the last being Hurricane Harvey in 2017 which impressively, knocked out an third of all U.S. refining capacity. The number of refineries seeing such impacts for Dorian will likely be zero, and that makes all the difference. GasBuddy’s app also continues to track where motorists can find gas in Florida, Georgia, South and North Carolina with Dorian bearing down.”

Motorists will be digging a bit deeper for the second straight year as the yearly national average price for gas will rise 19 cents versus last year to $2.57 per gallon, the highest since 2014, according to the 2018 Fuel Price Outlook released Wednesday by GasBuddy.

Some highlights from GasBuddy’s 2018 Fuel Price Outlook include: 

• The nation’s yearly gasoline bill will rise to $364.6 billion dollars, some $25 billion higher than what motorists spent last year as the average household sees their yearly gasoline bill rise to $1,898, up from $1,765 in 2017. Compared to 2016, motorists will be shelling out $62 billion more during the year, enough to buy a fleet of 670 Boeing 737s. 
• GasBuddy’s forecast does not expect any record-breaking prices to be set in 2018, and most of the country will see prices peak under $3 per gallon, but unexpected disruptions could push the national average close to $3. 
• Metro areas including Chicago, Los Angeles, New York City, Sacramento, San Francisco, Seattle, and Washington D.C. will likely see prices eclipse $3 per gallon. Cities such as Cleveland, Detroit, Miami, Minneapolis, Orlando, St. Louis and Tampa may get within arm’s reach of such prices. 
• How accurate have past forecasts been? In 2017, the forecast called for a yearly national average of $2.49. Actual: $2.39. In 2016, the forecast called for a yearly national average of $2.28. Actual: $2.12. 

 “Many will be quick to ask why we’re expecting higher prices. Ultimately, OPEC bears much of the responsibility for cutting oil production, leading oil inventories to begin 2018 nearly 50 million barrels lower than a year ago. Yet, understanding many factors, including OPEC, fuel taxes, the economy and their impact on supply and demand is integral to providing a thorough and balanced outlook on gas prices for 2018,” said Patrick DeHaan, head of petroleum analysis at GasBuddy. “Even one event can completely change trajectory of fuel prices for months. Look what impact Hurricane Harvey and Irma had on gas prices and availability. No one could have expected the unexpected, but still, our forecast was less than a dime away from being spot on.” 

 “While gasoline prices overall remain affordable, one aspect that continues to worsen is the gap between what stations are charging. It’s become nothing short of crazy how one station might sell gasoline 20-40 cents lower or higher than a nearby competitor. In addition to GasBuddy data showing spreads have risen to record levels, I’ve heard hundreds of complaints of motorists who get stuck at the pricier station, drive down the street and see it far cheaper. Always shop around when filling your tank. We spend thousands of dollars a year filling the tank; a dime or quarter per gallon adds up to hundreds of dollars,” he said.

Post photo by S. Reed.

By Judy Reed

Last week we had a call from a reader who wanted to know why gas is always higher in Cedar Springs than in Sparta. He said there’s usually about 20 cents difference. On Monday, we checked the gas prices in Sparta, and they were $2.15 at the lowest, and the highest was $2.23. Yet here in Cedar Springs, gas was $2.47. So we contacted Patrick DeHaan, Senior Petroleum Analyst at gasbuddy.com.

DeHaan noted that it’s not that unusual for this to happen. “It’s all about competition in an area,” he explained. “For whatever reason, in Sparta they have gas stations that often compete against each other, driving the price down. And yet there may be other times of the year when there’s not so much of spread.”

And he was right. On Wednesday, when the Post checked, gas had jumped up to $2.56 in Cedar Springs. In Sparta, the highest price was $2.53 and the lowest $2.49.

“The gas stations are probably paying similar costs, but the stations in Sparta are probably not making a lot after paying credit card fees and other overhead,” said DeHaan. “One station may be making 1-cent a gallon, and another 15-cents.”

As of Wednesday evening, the national average price for gas was $2.32; the Michigan average price was $2.53; and the Grand Rapids area average was $2.56, the same as in Cedar Springs.

For first time in GasBuddy’s history, gas prices will be lower on July 4 than New Year’s Day but you could still overpay.

Motorists taking to the road for the July 4 holiday weekend will be benefitting from the lowest Independence Day gas prices since 2005, paying an average of $2.21 per gallon, well under the 10-year average of $3.14, according to GasBuddy, the smartphone app connecting more than 65 million drivers with their perfect pit stop.

In Cedar Springs, the price was $2.34 one week before July 4.

Although average gas prices are at historic lows, the price variance (or “spread” in industry parlance) in gas prices in any given city on July 4 will be at historic highs. This means there is a higher chance consumers will overpay at the pump over the holiday weekend. SUV drivers can save on average $11 per fill-up by stopping at the favorable end of the price spread while smaller cars can save $6. The spread between the nation’s lowest and highest priced gas stations stands at $1.29 per gallon, sharply higher than the 10-year average of 98 cents per gallon for this time of year. Among gas stations in the same state, the spread stands at 51 cents per gallon.

“It’s thrilling to see gas prices falling just in time for the most-traveled summer holiday. Perhaps we can finally get rid of the myth that gas prices go up for the holiday,” said Patrick DeHaan, GasBuddy senior petroleum analyst. “Most importantly, motorists are getting a well-deserved break at the pump after years of high summer gas prices. This is like Christmas in July, instead of seeing fireworks at the pumps like we saw just a few short years ago.”

While gasoline prices have fallen to new seasonal lows just ahead of July 4, that’s not the only record to talk about: for the first time in GasBuddy’s 17-year history of tracking fuel prices, the national average gas price is poised to be lower on July 4 than it was on New Year’s Day by 12 cents. Over the last decade, the national average has been as much as $1.04 per gallon higher on July 4 than New Year’s Day while the average year sees prices 47 cents higher on the holiday.

For more info, visit GasBuddy.com.

It might be hard to believe, but at this time last year, gas stations in Houghton Lake waged a price war that had gas prices fall well below $1 a gallon. Gas in Cedar Springs was $1.67 at that time.

We are seeing higher prices than that this year. Over the past week, average retail gasoline prices in Grand Rapids fell 10.1 cents per gallon, averaging $2.37/g Monday, according to GasBuddy’s daily survey of 246 gas outlets in Grand Rapids. This compares with the national average that has fallen 2.5 cents per gallon in the last week to $2.34/g, according to gasoline price website GasBuddy.com. As of Wednesday, this week, gas prices in Cedar Springs were $2.38/g.

Including the change in gas prices in Grand Rapids during the past week, prices Monday were 60.7 cents per gallon higher than the same day one year ago and are 13.0 cents per gallon higher than a month ago. The national average has increased 10.3 cents per gallon during the last month and stands 43.0 cents per gallon higher than this day one year ago.

According to GasBuddy historical data, gasoline prices on January 16 in Grand Rapids have ranged widely over the last five years: $1.77/g in 2016, $1.96/g in 2015, $3.32/g in 2014, $3.17/g in 2013 and $3.59/g in 2012. Areas near Grand Rapids and their current gas price climate: Kalamazoo- $2.30/g, down 13.9 cents per gallon from last week’s $2.44/g. Lansing- $2.39/g, down 8.0 cents per gallon from last week’s $2.47/g. South Bend- $2.16/g, down 11.9 cents per gallon from last week’s $2.28/g.

“For the first time since November, the national average price for gasoline has fallen over the last week, helped by weak demand and rising gasoline inventories,” said Patrick DeHaan, senior petroleum analyst for GasBuddy. “This downward trend is evident in over two-thirds of states but may take additional time to materialize in others, yet is a familiar pattern for late winter as refiners build inventories prior to the late-February start of refinery maintenance season and thanks to the year’s weakest demand occurring over the next four weeks. However, motorists shouldn’t expect the trend to last long. After the sweetness of Valentine’s Day roses and chocolates is gone, they will be in store for a jump at the pump as maintenance season begins and the long transition to summer gasoline becomes a pinch point, leading to gas prices that will mostly trend higher for two to three months.”

For live fuel price averages, visit http://FuelInsights.GasBuddy.com. You can also see live gasoline prices at the Post website, www.cedarspringspost.com, and click on Current Gas Prices at the top. It will give you current prices in Cedar Springs, Rockford, and Sparta.

National average gas price on Thanksgiving projected to be third lowest in 11 years 

Motorists preparing to travel for Thanksgiving have something to be thankful for: falling gas prices. According to GasBuddy, prices in 44 of the 50 U.S. states are lower than a week ago, coming just in time for when millions of Americans will be hitting the road.

GasBuddy projects the national average gas price this Thanksgiving will be the third lowest in over a decade at $2.11 per gallon. Average prices have only been lower for Thanksgiving in 2015 ($2.05) and 2008 ($1.81). Monday’s national average price for a gallon of gasoline was $2.14, some 65 cents less than the average price on Thanksgiving merely two years ago ($2.79).

In Cedar Springs, gas was $2.11 Tuesday.

“Over the Thanksgiving travel period, Wednesday, Nov. 23, to Sunday, Nov. 27, motorists will be collectively spending nearly $1.7 billion less at the gas pump than the five-year average,” said Patrick DeHaan, senior petroleum analyst at GasBuddy. “This year will go down as the first in over a decade that no state—not even traditionally pricey Hawaii or California—has seen its average daily price breach $3 per gallon. We can thank global oil production that continues to outpace rising demand for the low prices.”

Consumers are taking advantage. According to GasBuddy’s 2016 Thanksgiving Travel survey, 52 percent of those traveling this year will be on the road for at least 4 hours; 20 percent of which will be driving 10-plus hours.

The survey also found that “running out of gas” is the third biggest fear when it comes to being on the road for the holidays this year, ranked behind 1) sitting in traffic and 2) needing to use the restroom but unsure where/when the next one will be available.

Additionally, travelers are on a mission. Fifty-five percent said they only make stops when absolutely necessary. When they do make stops, gas prices and location are the top deciding factors, followed by the cleanliness of the gas station convenience store.

“Travelers will be journeying a long distance this year. It is evident that consumers are looking to save time and make quick stops that can fulfill all their needs from affordable fuel, to clean restrooms, to good food,” said Michael DiLorenzo, vice president of marketing at GasBuddy. “The newly redesigned GasBuddy app is made to help with this journey. With enhanced search filters and station ratings, travelers will now be able to quickly and easily find what they want right in the palm of their hands

Post photo by L. Allen.

For a short time this week, Michigan had some of the lowest gas prices in the country.

Gas prices in the Grand Rapids and surrounding areas averaged $1.76/gallon as of Sunday, November 29, with prices in the Kalamazoo area as low as $1.68/gallon. The price in Grand Rapids at this time last year was $2.86/gallon.

The price was still $1.76 in Cedar Springs on Wednesday morning, but had risen to $1.89 by Wednesday afternoon.

“Gasoline prices over the weekend and holiday were certainly quite cheap compared to prior years and other holidays this year,” said Patrick DeHaan, GasBuddy senior petroleum analyst. “While some cities and states may see some slight bumps at the pump in the days ahead thanks to the fallout of the downing of a Russian fighter jet last week, we’re more focused on the upcoming OPEC meeting this coming weekend and the potential implications from any major change in oil production. There are expectations that OPEC will continue to kick the can down the road and not change production levels. If there are surprises either way, it could definitely be felt at the pump and into 2016,” he added.

Gas prices plummeted Monday and Tuesday to as low as $2.04 a gallon, then rebounded sharply to $2.39 per gallon on Wednesday.

Wednesday was the switch- over from summer to winter blend gasoline.

No information was available at press time on why the gas prices jumped.

Gas prices in Cedar Springs jumped twice last week to just under $3.00/gallon, but had dropped down to $2.86 by Wednesday.

A report from GasBuddy.com, on Monday, August 17, noted that gas prices in Grand Rapids had risen 52 cents a gallon in the last week. The average price in Grand Rapids on Sunday, August 16, was $2.97 a gallon. Cedar Springs was only a penny lower. This compares with the national average that increased 8.5 cents per gallon in the last week to $2.68/g.

By Wednesday, August 17, Cedar Springs had dropped back to $2.86, while the greater Grand Rapids area averaged $2.895.

Including the change in gas prices in Grand Rapids during the past week, Sunday was 45.0 cents per gallon lower than the same day one year ago and 36.5 cents per gallon higher than a month ago. The national average decreased 9.0 cents per gallon during the last month and stands 77.5 cents per gallon lower than the same day one year ago.

“Obviously, the story about fuel prices last week was all about a massive spike in gasoline prices throughout the Midwest,” said Patrick DeHaan, GasBuddy senior petroleum analyst. “Prices have risen in Great Lakes states at paces rivaling and exceeding prior records, which I would pin on an unexpected emergency shutdown of a unit at BP’s Whiting, Indiana refinery. In addition, there have been other scheduled outages in the Midwest that may be leading to gasoline demand outpacing supply in the region, essentially causing panic on gasoline markets,” DeHaan said. “Hikes have been witnessed across many states, though the epicenter of gargantuan hikes was centered in Michigan, Indiana and Illinois, where prices raced up by over 50 cents a gallon in mere days. Also seeing spikes over 25 cents: Ohio, Wisconsin and Kentucky, while Minnesota, Oklahoma, Missouri, Kansas and Iowa saw prices jump over 10 cents a gallon,” DeHaan noted. “At this point, it does appear that most of the price shocks are behind us, though if there are any curve balls that hit the market, all bets are off. Outside the Great Lakes, most regions are seeing gasoline prices decline. Leading decliners are New Jersey and Oregon, with Washington coming in third,” DeHaan said.

Michigan Attorney General Bill Schuette issued a warning to gas stations last Friday against any attempt to take advantage of consumers by price gouging or price fixing.

In addition to this warning, the Attorney General has also issued a letter to BP, the owner of the Whiting, Ind. facility experiencing an outage, as well as other major petroleum companies outlining a need for transparency in the case of an outage or other unexpected event.

“As Labor Day weekend approaches, the effects of an outage at a major Indiana petroleum refinery, combined with additional factors, means Michigan families are seeing an increase in the price at the pump. These circumstances do not constitute a free pass for gas stations to gouge consumers,” said Schuette. “We will not tolerate any unscrupulous behavior that violates Michigan law when it comes to gouging and price fixing.”

Every day, year round, Schuette’s Consumer Protection team monitors the balance of wholesale and retail petroleum prices and profit margins in regions around Michigan. Additionally, the Department receives and reviews consumer complaints and inquiries about individual stations. The Department investigates any time there is evidence that state law has been violated for gouging or price fixing.

Under the Michigan Consumer Protection Act, a retailer may not charge a price that is “grossly in excess of the price at which similar property or services are sold.” Anti-trust laws also prohibit gas stations from entering into agreements to arbitrarily fix prices in unison.

For example, Schuette secured convictions for gasoline price-fixing by five Michigan station owners in 2012. The Department has also entered into “compliance-agreements” with stations requiring them to submit to monitoring after they spiked prices well above the state-wide norm on a particular day or after a weather event.

Schuette remains committed to fighting higher gasoline prices in court when the price increases violate the law. If consumers become aware of direct evidence concerning 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,” they are encouraged to contact the Attorney General’s Consumer Protection Division at 1-877-765-8388 or file an online complaint at www.michigan.gov/ag.

GasBuddy is projecting that this summer’s gasoline prices will bring the most affordable summer months since at least 2005.

While it may sound wild, GasBuddy projects that the summer driving season of 2015 (Memorial Day through Labor Day) will see the U.S. average price of gasoline come in around $2.35 per gal, a revision from its 2015 forecast it released last December. A recent Energy Information Administration projection pinned summer gasoline prices at $2.45/gal. Both numbers would represent the lowest summer prices in a decade.

“That means more Americans can afford to pack up and go enjoy a summer getaway because the cost of getting there will likely be the lowest since 2005,” said Patrick DeHaan, senior petroleum analyst with GasBuddy. “The latest data from the EIA showed the largest week-to-week buildup of crude oil (10.9 million barrels) since March 2001 and that underscores the downward pressure on fuel prices. So we’re confident in our projection; that the summer of 2015 will see the national average come in at a seasonal level we haven’t approached since 2005.”

“For consumers intent on saving the most no matter what part of the country they may be visiting, we suggest downloading GasBuddy’s free app because the average spread (the gap between the highest 5 percent and lowest 5 percent of gas prices) by state still averages out to 45 cents daily,” said Gregg Laskoski, another senior petroleum analyst with GasBuddy.

Photo by J. Reed.

By Judy Reed

After a year that saw the average price of gas stay between $3 and $4 per gallon, drivers are finally getting some much needed relief at the pump. Last week the Post reported gas had dropped to $1.94 in Cedar Springs, from $2.13 the week before. As of Tuesday, December 30, gas in Cedar Springs is now $1.79 per gallon. That’s the lowest it’s been since early 2009.

According to GasBuddy.com, the average price of gas, as of Tuesday, in Grand Rapids is $1.86; the state average is $2.00; and the national average is $2.26.

“The dramatic decline at the pump continues to reap significant savings for the motoring public—over $525 million less spent every day versus this past summer, or $375 million less than the same time last year,” said Patrick DeHaan, senior petroleum analyst with GasBuddy. “The slump in crude oil has wavered slightly and we’re in the fourth quarter of the game. However, there is still a chance that crude prices resume their slump again, and carry the pump plunge into overtime,” DeHaan said.

According to DeHaan, as of Monday, gas prices had fallen $1.85/gal in Michigan since June 28, the largest drop in the nation. Following close behind: Kentucky, down $1.66/gal, Indiana, down $1.62/gal, Ohio, down $1.61/gal, and Illinois, down $1.60/gal over the same time frame.