NewsGetting Around Metro Detroit


Gas prices remain high going into Labor Day weekend; here's why

California High Gas Prices
Posted at 5:59 AM, Sep 03, 2021
and last updated 2021-09-03 06:32:21-04

(WXYZ) — Labor Day weekend is the unofficial end of summer, and for those who are heading out of town, be prepared to pay at the gas pump.

High demand and Hurricane Ida are driving up gas prices. As of Friday, the average price in metro Detroit is $3.27 per gallon for unleaded, with the state average at $3.21 per gallon.

"They need to go down, people not going to travel, it is going to cost too much," Kenya Banks said.

For some, the high gas prices mean staying home this weekend. For others, gas prices are hurting their livelihood.

"I got 27 gallons of gas for $91.15, this will last me probably three or four days and I am back here again," Phil Hargrave, the owner of Hargrave Mechanical, said.

It's costing him a lot of money to go job to job.

"It is hitting me in the wallet, the pocket book, so, and I'm not the only one everybody else is getting hit with it too, we just got to roll with the punches right, Ali?"

But now, there is another punch drivers are going to have to deal with going into the weekend.

Patrick De Haan, the head of petroleum analysis for Gas Buddy, said Hurricane Ida shut down about 15% of the nation's refining capacity, which is increasing prices.

"National average will probably go up five to 15 cents," he said. "In Detroit, it may be a little bit more than that because prices have ignored some of the increase that were seen prior to Ida, so stations may be passing along more of those previously ignored movements."

How long the hike lasts depends on the extent of the damage and how long power outages last.

The timing could be considered frustrating, considering fall is usually when we catch a bit of a break at the pump. That's usually due to demand dropping and a switch of fuel blends.

Adrienne Woodland, Spokesperson Michigan AAA 03:24:18 "The winter blend is cheaper to produce, so that can alleviate prices and ease prices at the pump," Adrienne Woodland, a spokesperson for AAA Michigan, said.

Experts do predict there will eventually be relief at the pump, just not this weekend.

"If everything goes well, I think we have a good shot of getting back under $3 by the end of the year, if not like I said, patiently late October early November," De Haan said.

While some will hang back because of the prices, demand to drive is still high. That's due in part to pandemic fatigue, and people feeling safer driving than flying.