Local

Gas prices rising again

Monday, May 04, 2009

Tags:

local, cathy shafran

Cathy Shafran
More: Bio, abc12.com News Team, E-mail

MID-MICHIGAN (WJRT) -- (05/04/09)--Gas prices are on the rise in Mid-Michigan.

The American Automobile Association of Michigan says gasoline prices are up 9 cents per gallon over the past week.

That puts the statewide average at $2.12 for a gallon of regular unleaded. That is still more than $1.50 lower than it was at the same time last year.

But with the summer driving season right around the corner, we may need to brace ourselves for more rising prices.

There's no way to know with 100 percent assurance that gas will rise again to as much as $ a gallon.

But when you see prices like $2.29 a gallon when they were under $2 just in the last week or two, it gives one pause.

One local expert says gas prices will be going back to $4 a gallon, but not necessarily this summer.

He says when the economy rebounds and people start using more gas, the demand will eventually hike the price back to $4.

What we're seeing now, he says, could be a springtime blip.

"I think what you're seeing is seasonal variations. Gas prices are always going up and down," said Prof. Craig Hoff with Kettering University.

"You usually hit a minimum in the January time frame and then you see a blip in the summertime. Part of that has to do with a little more demand. Also there's a changeover from season to season."

Hoff says he wouldn't be surprised if the increases at the pump levels off in the $2.50 range this summer.