GRAND RAPIDS, Michigan. — Last week, we told you where to fill up during the summer months if you're traveling west to Chicago or east to Detroit. This week, we're looking north to the Upper Peninsula, where some of the cheapest gas prices in Michigan are now being reported.
As of Monday, June 16, you can pay an average of $3.21 a gallon when crossing the bridge and $2.88 on the west side of the peninsula—a difference of more than 30 cents. Now we're learning why.
“These stations are being very competitive in a fight for market share, which is leading to lower gas prices for consumers,” GasBuddy analyst Patrick De Haan said.
The two stations he refers to are Kwik Trip, which is expanding into Michigan's Upper Peninsula from Wisconsin, and Krist Convenient Stores. Krist previously operated in the UP with virtually no competition in certain areas. Now the two are competing, undercutting prices to attract drivers to their respective pumps. This is good news for anyone traveling to Pictured Rocks or the Porcupine Mountains, as it won't cost as much to fill up in those more remote areas.
“In areas where there aren't as many gas stations or a lower level of competition, stations don't have to undercut prices because their competitors may be five or 10 miles away,” De Haan said. “Generally speaking, areas that are more rural have higher prices, either because they're not selling as much gasoline.”
