Gas Price Shift
With gas prices finally dropping after almost two months of increasing, consumers are probably relieved to see the numbers changing at gas stations. AAA Michigan surveys 2,800 Michigan gas stations every day and recently reported the statewide average is $3.72, which is down 16 cents in one week. This may be 92 cents higher than the price per gallon during the same time last year, but consumers seem to still be grateful for the drop.
MI Auto Times wants customers know that focus on fuel mileage and fuel efficiency is still important as it has been predicted the prices will not stay lowered for long. Current prices for a barrel of oil hover around $103, but according to TheStreet.com, projections show the prices per barrel increasing between $120 and $150 by the end of 2011. This could mean a $5 figure of price per gallon.
Some analysts say the price jump could be because of a few of factors such as:
• Debt from other countries causing a domino effect
• Problems occurring in the Middle East causing supply disruptions
• Pumping station issues also causing supply disruptions (i.e. a leak recently closed the TransCanada Corp pipeline, which transports 591,000 barrels per day)
With all of these factors not being predictable, it is difficult to say what may be the most realistic outcome in terms of rising prices.
It may the best interest for those looking to purchase or lease a new vehicle to continue to keep in the fuel mileage and other environmental characteristics of a vehicle. The best advice MI Auto Times may offer is to buy the most fuel-efficient vehicle that meets the needs of the owner and their family. This may ensure happier wallets if and when the gas prices fluctuate to the higher side of $5 per gallon again.
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[Source(s): The Detroit Free Press, Reuters, NPR]