Posted on Mon, Sep 13, 2010 : 8:04 a.m.
Enbridge oil pipeline leak sends gas prices soaring in Michigan
By AnnArbor.com Staff
Gasoline prices are up dramatically in Michigan after a leak leak forced the closure of a Chicago-area oil pipeline owned by Enbridge Energy Partners, AAA Michigan said.
AAA Michigan says prices are up 12 cents per gallon over the past week to a statewide average of $2.90. That's 36 cents per gallon higher than last year at this time. As usual,
Of the cities it surveys, AAA Michigan said the cheapest price is in the Traverse City area, where it's $2.75 a gallon.
Enbridge Energy Partners is the same company that owns a pipeline that leaked hundreds of thousands of gallons of oil near Marshall in southern Michigan in July.
Dearborn-based AAA Michigan surveys 2,800 Michigan gas stations daily.
Comments
Sallyxyz
Tue, Sep 14, 2010 : 4:37 a.m.
Brad says: So why again does AA always have the highest gas prices in the state? Answer: Because A2 is the rip-off capital of the state. Housing is the highest in the state in A2 along with the rest of the gouging that takes place due to all the "rich" students that live here. (I don't think all students are rich by a long shot, but that's the perception of the greedy landlords, etc.) Look at the prices of food and other goods compared with the rest of the state also. Merchants are notorious for ripping off students and the rest of us who live here have to pay the outrageous prices for things. I was shopping in the Salvation Army store on State Street recently and almost fainted at the prices listed on used clothing, some of which were higher than the same item purchased new! Restaurants are serving low quality food and charging inflated prices, because it's in A2. Ever visit the Farmer's market in A2? It's a boutique market with overpriced produce and terrible parking options. Gouging is alive and well in A2.
llspier
Mon, Sep 13, 2010 : 8:41 p.m.
Common sense should tell us an OIL pipeline shutdown didn't affect gasoline prices directly or as quickly as this occurred. The only way prices could be affected so quickly is if speculators among commodity traders bid the price up based on a future shortage in gasoline from the pipeline shutdown. Of course, Obama's stated plan to generate much of the cash needed for his latest $50 billion 'gift' to special interests by cutting 'subsidies' to oil and gas companies likely set the market on edge far more than this crude oil pipeline shutdown did. Likewise the moratorium on Gulf drilling should be getting around to taking its toll on prices about now, also. Those are two solid causes of rising gas prices-this oil pipeline is a distant third. AA repeats what they're told by some talking head like a not-too-bright parrot. Apparently, nobody is thinking at AA either.
JPLewis
Mon, Sep 13, 2010 : 8:18 p.m.
amlive: Do keep in mind that every product you purchase is transported by vehicles which use fuel. Just sayin'
amlive
Mon, Sep 13, 2010 : 9:33 a.m.
"Where's the causal correlation between the gas price and oil leak?" I assume it has to do with increase in cost of transport by truck to refineries where oil may have previously been pumped directly (or at least closer to?)? Just an assumption though - no idea if it's right. When I drove often between Lansing and Mount Pleasant, I remember gas always being cheaper in Alma (when that refinery was still operating). I assume the Total station there had a shorter haul to fill its tanks, and cost was related to that, but again, that's just an assumption. Gas prices in different regions are more likely driven by regional economics and rent more than transport distance from refineries, and that always seemed a rather economically depressed area. Isn't Detroit the only city left in the state with an operating refinery? I didn't think this pipeline went to Detroit to begin with, so I guess I'm a bit confused too. Gas prices are probably just one of those things the public isn't meant to understand. I walk to work, so it's of little more than casual interest to me anyway.
Epengar
Mon, Sep 13, 2010 : 9:08 a.m.
This Freep article has a little bit more information, but only a little http://www.freep.com/article/20100913/NEWS05/100913012/1320/Oil-leak-sends-gas-prices-soaring
Brad
Mon, Sep 13, 2010 : 8:44 a.m.
So why again does AA always have the highest gas prices in the state?
xmo
Mon, Sep 13, 2010 : 8:37 a.m.
I wonder if George Bush is the blame for this? Since no other reason was given.
5c0++ H4d13y
Mon, Sep 13, 2010 : 8:32 a.m.
Where's the causal correlation between the gas price and oil leak?