Is Michigan Really Paying Under A Dollar For Gas?
The reports have been widespread, that gas stations in Michigan are selling gas for less than $1 per gallon, with some reports saying about .47 cents a gallon. Can that possibly be true? Well, yes, but hold on a second.
It is true that yesterday, gas prices in Houghton Lake in Northern Michigan did drop to about 78 cents a gallon, as pictured above. They eventually dropped as low as 47 cents a gallon thanks to some friendly competition. This was all confirmed by GasBuddy.com. It was enough to get the Internet fired up and excited. While we've been loving low gas prices, don't expect ours to fall that low anytime soon. This was a very isolated incident, and only lasted about a day. Earlier today, Monday, they are back to more normal, albeit low, prices. The station featured is at about $1.32 right now, according to GasBuddy.com.
Around here, the lowest gas prices we're seeing are $1.59 at the BP off Williams near 16th Ave. SW, with plenty more showing under the $1.70 mark, which is well below the $1.89 national average. Granted, it's not 47 cents a gallon, but it's still fantastic to not lose an insurance payment by filling up your tank. So why are they so low, how long will it last, and how low will it go?
Historically, it seems gas prices drop in election years for some reason, of which everyone has a conspiracy theory as to why. I'm not saying those theories aren't true, because what do I really know about the truth in politics. I'm just saying it seems to almost always happen that way. As such, we SHOULD expect to see lower prices for a good portion of the year, although prices will rise as they switch from the "winter mix" gas to "warm weather mix" in a few months.
There's also a lot to do with the economics of the Middle East. Right now, we're seeing increased oil surplus, with an increase in production promise from Iran thanks to the lifted sanctions. In the rules of supply and demand, we're not driving as much, so there's more supply than demand for the oil/gas, forcing prices down. However, if we all start traveling more because prices are down, we might start to see that price go back up.
In short, it appears prices will remain down for some time yet, if not drop further. We'll keep our fingers crossed than it might go below a dollar, although it doesn't seem likely. So, for now, enjoy. Just don't drive more because of it. And don't hold your breath for 47 cents a gallon.