Gas over $3/gallon in Detroit area

Well, it’s official: gas prices have gone over $3.00 a gallon in metro Detroit. Although has a lot of stations listing $2.99 a gallon, there are a few in the northern suburbs that are at $3.08 and $3.06.

Looks like I’ll be dusting of the old bike tomorrow…

8 Comments so far

  1. WanderingMonkey (unregistered) on August 31st, 2005 @ 12:20 pm

    i’m tempted to find a really old bike of mine at my parents and mount racks on it so i can just use that for grocery trips.

    being an ex-bike shop mechanic does have it’s perks though. too bad my commute is so far.

  2. baldy (unregistered) on August 31st, 2005 @ 1:25 pm

    The gas station by my house was at $3.25 this morning in an obvious case of price gouging. Every where else was around $2.99. And what’s with still using .9 cents for pricing?

  3. (unregistered) on August 31st, 2005 @ 3:51 pm

    Thanks for the comments, guys.

    Baldy, I don’t think the higher prices are a case of gouging…hurricane Katrina interfered with the refineries in Louisiana, putting a halt on about 91% of its supply. The U.S. gets about a quarter of its gas from these refineries.

    Check out more info. on this topic from this Marketwatch article:

  4. Bobby (aka UrbanTiki) (unregistered) on September 1st, 2005 @ 12:15 am

    I think the deal here is this:

    – a barrel of oil normally sells for $28. This includes a healthy profit for the oil company.
    – oil is now trading at $71 per barrel, and the amount of output has not increased.
    – Bush had an opportunity to do one of two things today:
    a) impose a cost cap on oil and gas, relieving fears of prices going even FURTHER (as analysts are saying $4/gal is coming soon);
    b) ask the oil companies, of whom ExxonMobil had a Q2 profit of $8 BILLION, to bring their prices down to minimal profit level, so as not to make big profits during crisis time.

    Of course, he did NONE of that.

  5. baldy (unregistered) on September 1st, 2005 @ 9:49 am

    What I meant by price gouging is when one station chrarges a large amount more then the rest in times of extreme circumstances. After 9-11 there were places charging over $4.00/gallon! All though I don’t like the high gas prices, I understand why they continue to rise. Something I don’t understand, however, is why the oil companies are recording record profits.

    Bring on E85 ethanol! (E85 = 85% ethanol, 15% gas) For one, the only thing that needs to change on your existing car is the fuel system needs due to the corrosive nature of the high level of alcohol. No engineering changes, no development costs, just some part upgrades. The overall change in cost of the vehicle is minimal. Two, since nothing in how the engine opperates changes, these vehicles will work with the same gasoline we all buy. Three, the emmisions is very clean. Four, it uses renewal resources from the US, mainly corn, and the byproduct is a high value live stock feed.

    visit e85fuel for more info

  6. (unregistered) on September 1st, 2005 @ 1:56 pm

    Thanks, Baldy. I am aware of what price gouging is – I just don’t think that is what we are seeing at the pump this time. Yes, there may have been stations that charged amounts well over the average price per gallon after 9/11, and maybe even this week, but the majority of stations that are now at $3-3.20/gallon are not gouging; they are keeping in line with the rise in average prices that were brought on by the hurricane’s effects on the Louisiana refineries.

    While I am not happy that the oil companies are making profits while consumers are being forced to pay more for oil, this is indicative of a supply and demand economy, and is the result of a much larger issue: the world needs to stop relying on a dwindling natural resource, especially one that has a major chunk controlled by a cartel (OPEC may not have been directly responsible for this week’s spike in prices, but has played a major part in rising oil prices for a long time).

    I do agree with you on the E85 thing, and would actually like to see things go much farther than just E85 – I’d like to see fossil fuels completely replaced by alternative energy sources – but I realize that a major change like that involves a huge shift in mnay areas, so small steps like moving to E85 are certainly a good starting point.

    I was involved with the recent Road to Detroit campaign ( and believe the government and big business not only need to lead the push away from oil reliance – they have a duty to do so. I also believe that price gouging is fraudulent, and that those responsible for taking advantage of consumers by significantly raising prices well above that of their competitors or to amounts not in accordance with supply and demand calculations should be punished accordingly.

  7. lance (unregistered) on September 3rd, 2005 @ 1:42 pm

    That’s the price we pay for consuming so much!

  8. lance (unregistered) on September 4th, 2005 @ 2:37 pm

    Bobby (aka Urban Tiki) is right about oil company profits. Five years ago Exxon-Mobil was #9 in the Fortune 500, now its #2, behind only Wal-Mart.

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